Cyprus bank boost from ECB rate cuts
The Association of Cyprus Banks (ACB) said on Thursday that it sees further progress in the economy, driven by the reduction of interest rates in the context of the easing of monetary policy by the European Central Bank (ECB), the ACB’s President Aristidis Vourakis said, noting that ECB rate cuts are being reflected in the lending rates of the Cypriot banking system.
A delegation of the ACB, headed by Vourakis, met with Cypriot Minister of Finance Makis Keravnos, who praised the progress made by the island’s banking system and expressed gratitude over Cypriot banks’ participation in a new government scheme to subsidize interest rates for loans vulnerable homeowners signed up for between 2022 and 2023.
“I have expressed my satisfaction over the situation in the banking system and its high capitalization,” Keravnos said in statements following the meeting.
For his part, Vourakis said he conveyed to the minister the association’s satisfaction over the “outstanding course of the Cypriot economy, as reflected in the capital markets and the credit rating agencies.” He also said he briefed the minister on the “excellent progress” made by the Cypriot banks in the last 18 months.
