“In good times we should be sav­ing as a state and en­cour­ag­ing peo­ple to save up. We have a growth rate of al­most 4% and un­em­ploy­ment has dropped un­der 8% and de­clin­ing. There is no need to push more money into con­sump­tion. This is what we’re do­ing… we are

Financial Mirror (Cyprus) - - CYPRUS -

“What politi­cians should have done was to reg­u­late the ESTIA with tighter cri­te­ria, tar­get­ing the truly vul­ner­a­ble lay­ers of so­ci­ety, leav­ing no space for moral haz­ard”.

Ge­or­giades stressed that now is the time to con­tinue with cor­rec­tive mea­sures. Good pe­ri­ods are the best time to per­form cor­rec­tive mea­sures.

“If you are to give out raises you should be tak­ing into con­sid­er­a­tion the needs of the econ­omy. What is hap­pen­ing now is that the govern­ment is hand­ing out lat­eral raises, without tak­ing into con­sid­er­a­tion the pay­roll in the pri­vate sec­tor, what is paid out for the same ser­vices in the rest of the EU”.

Re­form­ing the jus­tice sys­tem

The state needs to pro­ceed with adopt­ing mea­sures that will re­form the jus­tice sys­tem in Cyprus, mak­ing cred­i­ble to out­siders.

“We are talk­ing about re­duc­ing the banks’ NPEs (non per­form­ing ex­po­sures). Ef­forts to sell off NPLs are hin­dered by the fact that we do not have a clear jus­tice sys­tem re­gard­ing re­pos­ses­sions, with laws that keep chang­ing, and some re­pos­ses­sion cases could be in the courts for the next ten years”.

A re­sult of the un­clear reg­u­la­tory sys­tem re­gard­ing al­most all as­pects of the so­ci­ety, but es­pe­cially the bank­ing sys­tem, saw big bank­ing in­sti­tu­tions like HSBC leave the is­land.

“What­ever peo­ple may say about this par­tic­u­lar in­sti­tu­tion, it was still a size­able bank which left be­cause of holes in the le­gal sys­tem.

“And who did we re­place it with? With peo­ple and in­sti­tu­tions who knew how to ma­nip­u­late such sys­tems and even­tu­ally led to the down­fall of our bank­ing sys­tem,” said

it more

Ge­or­giades said the work of the coun­cil is un­der­mined by the fact that it is un­der­staffed, and es­sen­tially forced to eval­u­ate the govern­ment’s fore­casts and pro­duce re­ports with just two peo­ple work­ing on the task.

“We are ba­si­cally run­ning the show with a hand­ful of peo­ple. The board is just three peo­ple, my­self, em­ployed full­time and two part-time board mem­bers who come in once a month for meet­ings.

“De­spite the fact that par­lia­ment has ap­proved the coun­cil to have 3-6 peo­ple on staff, they are with­hold­ing the rel­a­tive funds”.

“This means that we can­not work on ev­ery­day projects, like run­ning mod­els pre­dict­ing fu­ture de­vel­op­ments.”

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