Market sentiment looking up, FinMin says

Market sentiment is looking up, Finance Minister Constantinos Petrides said Tuesday after a broad meeting at the Presidential Palace between President Nicos Anastasiades and representatives of financial institutions.

“We’ve moved into the second phase, into the phase of recovery, and the government along with the banking sector will contribute with the means they possess toward this direction,” Petrides said, noting that “market sentiment is changing, which is very important.”

Describing Tuesday’s meeting as “very constructive,” Petrides said the island’s banking institutions ensured that government schemes aiming to kickstart the economy will be fast tracked.

“The interest rate subsidy scheme is very important, both for the business community but also for new couples wanting to take out loans,” Petride said, adding that banks will assert their own efforts to fast track these procedures to support the local economy.

“We have every right to be truly optimistic that we will come out winners from this crisis as well,” the Finance Minister stressed.

Cyprus economy picking up speed

“The first signs after the partial lifting of restrictions are very positive as regards the market and the labour market,” Petrides said.

“The development of recent years has given the economy and the private sector the stamina that will allow it to overcome [the current situation,” he added.

Banks willing and able to pitch in

Speaking after Tuesday’s meeting, President of the Association of Cyprus Banks and Hellenic Bank CEO Ioannis Matsis said the economy appears to be faring better than what April estimations expected.

Matsis assured that banks have the liquidity and capital required to support the economy through the measures announced by the governments.

“We consider the measures very effective, including measures seeking to boost lending, to subsidize interest rates, and to provide government guarantees to the European Investment Bank, which we believe will boost banks’ ability to lend,” Matsis said.