Cyprus banks loosening control, new finance minister takes over reins

by James Karedelli | Saturday, Apr 6, 2013 | 456 views

Northern, WI 04/06/2013 (usastockreport) – The 40-year-old Haris Georgiades will be sworn in as Cyprus’ Finance Minister by Nicos Anastasiades, the President even as the banking restrictions are being eased by the government. Georgiades who is a University or Reading economics graduate and a lawmaker with the president’s Disy party will be taking the place of Michael Sarris. The latter was from the banking field and he resigned from his finance minister post just eight days after he helped the Cyprus government seal the bail-out deal with the European Union. He will be helping in the investigation that is being carried out by a committee that has been set up to find the reason for the breakdown of the two largest lenders in the country.

Not a cushy job
Georgiades is taking over an uncertain economy that is going to take a long time to recover. At one time Cyprus was a financial hub and it has today become the first country in the Euro area to come under capital control which had to be implemented to stop the country’s banks from crumbling completely. The troika- International Monetary Fund, the European Union and The European Central Bank have granted Cyprus two additional years for the implementation of measures that are connected to its financial bail-out. Before his departure Sarris said that he would not be able to project any economic trend for the rest of the year and said that 2014 is going to be tough as well.

Even before the bail-out Cyprus’ economy had been estimated to fall by 3.5 percent in the current year. The final details of the agreement which had been pending since last June will be thrashed-out on April 4 at the Euro working group meeting that consists of financial officials. The country will be able to secure financing starting May and that the government holds bonds worth 1.4 billion.

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