Strengthening the banking system of Cyprus

According to the Minister of Finance of Cyprus, Mr Kikis Kazamias the appropriate measures to support the banking system shall be taken in order to strengthen the real economy of Cyprus and other EU countries.

After his return from Brussels, the Minister of Finance of Cyprus expressed concern about the financial crisis for banks in Cyprus, adding that similar disturbances in the banking system and financial markets are distinctive not only for Cyprus, but for all countries in the Eurozone.

Mr Kazamias was quite optimistic and confident that EU member states are able to develop a competent strategy to support the stability of their banking systems. In regards to the status of banks of Cyprus, Mr Kazamias said that all efforts should be directed to support them.

In the near future plans of Cyprus Minister of Finance are the meeting of finance ministers of the euro zone and participation in the meeting of the EU Economic and Financial Affairs (ECOFIN). As a result of an extraordinary emergency summit of leaders of the EU on 26 October 2011 it will be adopted a long term plan to resolve the debt crisis.

At the same time, government spokesman, Mr Stephanos Stephanou said that the government in the cooperation with the Central Bank of Cyprus shall take measures to support the banking system of Cyprus, which will be made to the extent possible in the case of potential problems that may arise in connection with events in Greek economy.

By Irina Lelina for Areti Charidemou & Associates LLC

Areti Charidemou & Associates LLC Law Firm