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Despite various actions taken and a decrease in inflation, there are worries about the central bank's ability to achieve its goals. Some experts suggest that the target of 2% price growth, set years ago, might not be suitable for today's changing global economy. The question is whether it's time to reconsider the 2% target rather than just changing interest rates.
Financial Challenges
The lack of a foreclosure/divestment plan could lead to higher borrowing costs and might encourage the creation of new financial entities. This poses an ongoing issue for Cyprus, affecting things like credit ratings and international organizations like the IMF. Even a decade after the 2013 banking crisis, banks need to recognize that they have limited options for getting back homes used as collateral.
Slower Lending
It's now harder to get loans, and this applies to businesses and individuals. Demand for loans is low, mainly because of how the European Central Bank manages the money it provides to banks. Supervisors think that as interest rates go up, they won't have as positive an effect on bank finances.
Precision in Food Production
Being precise is crucial, especially when it comes to producing food. In the modern era, we see that not being precise has led to shortages of basic things we need every day. The main goal with food is to make the agricultural sector more efficient, so it can produce more with fewer resources. This can help with the problem of not having enough food. The European Union is doing better than many other places in this regard.
Sustainability in Farming
Farming is getting attention because it produces a lot of greenhouse gases, which are bad for the environment. To tackle this issue, there are programs and campaigns promoting sustainable diets and healthier living. The EU, which is committed to fighting climate change, should be doing well in this area. But it's falling behind the average of other developed countries.
These are the important economic topics that people are talking about in Cyprus. They reflect the complex challenges that the country's economy is facing.
