Fitch’s assessment of the Cyprus economy
Statement of Christos Christofides, Member of the Political Bureau of AKEL
AKEL C.C. Press Office, 24th October 2015, Nicosia
Fitch rating agency’s latest assessment of the Cyprus economy, despite the upgrading which is supportive to the economy’s evaluation, highlights once again the serious problems facing the economy. It notes:
– The coveted real growth is referred to a medium term goal. The economy remains in essence stagnant in the short term period ahead.
– The huge private debt is recorded, which in combination with the very high rate of non-performing loans, entails severe dangers.
– Fitch confirms that the economy’s main problem is the banking sector. It again notes that that the Cyprus banking sector continues to face serious dangers. Despite the fact that the Memorandum was mainly imposed to prop up the banking sector and despite the Cypriot people’s very painful sacrifices, the economy’s main problem, namely the banks, continues to face dangers.
The main task today is to raise people’s living standards, especially of the low and middle classes. Evaluations are not enough to achieve this goal.
The situation in the real economy must be the Government’s foremost concern. The situation in the real economy, particularly society in general, anything but allows for any celebrations.
How can the government celebrate when society is paying the overwhelming cost of the implementation of Memoranda policies? When today in Cyprus we have:
- 70,000 unemployed people
- 240,000 of our compatriots below the poverty line
- 50,000 p0eople are fed by social food banks
How can they celebrate when thousands of Cypriots, mostly youth, are migrating over the last two years abroad in mass numbers to find work?
How can they celebrate Cyprus’ entry to the markets in a country that has:
- The highest interest rates in the Eurozone
- The highest percentage of non-performing loans in the world
- Almost zero growth
