If the Finance Minister means what he ascertainsd on the banks, he should proceed with practical measures

 

Statement by Charis Polycarpou, Head of the Economy Policy Sector of AKEL

26 May 2024, AKEL C.C. Press Office, Nicosia

In an interview today, the Finance Minister says that Cyprus’ inflation does not justify the high lending rates, took sideswipes at the arrogant and extortionate way in which the banking system in Cyprus operates, exploiting the constant interest rate increases. We welcome the Minister’s statement, even if it comes after a very long delay. Of course, what is more valuable – apart from the findings – are the government’s actions and decisions. General references and wishful thinking have been tried in the past and have failed.

Therefore, if the Minister really means what he says, he has an obligation to persuade the Government to proceed with specific measures:

First, he should bring back the measures to support society that he terminated given that the Finance Minister himself – provided that he concludes that the economy’s extraordinary conditions continue to place unexpected financial burdens on households and businesses.

Secondly, he should make use of AKEL’s proposal for a special levy on the banks’ windfall profits so that support can be provided to borrowers and young couples in a targeted way for the acquisition of housing.

Thirdly, the government should not just make verbal statements and finally implement what it announced long ago regarding the subsidy of interest rates and on housing policy.

26.05.2024