The distribution of loans reflects the economy’s difficult conditions today
Statement by the Head of Economic Research Bureau of the C.C. of AKEL Haris Polycarpou
AKEL C.C. Press Office, 3rd October 2019, Nicosia
The figures released by the Central Bank of Cyprus with regards the granting of new loans during the first eight months of 2019 represent yet another reply to all those who continue to argue that the current developmental model creates opportunities for everyone. The biggest share of the € 2.2bn of new loans granted in 2019 went to big businesses for loans exceeding €1m.
The distribution of lending reflects the difficult conditions prevailing in the economy today for the overwhelming majority of society. The fall in working people’s incomes, the pressure on non-performing loans for the biggest section of society, in combination with a developmental model that creates opportunities for the privileged few, are all the result of the DISY-Anastasiades government’s policies.
That’s precisely why we reiterate that fragmented measures and selective incentives for cronies are not enough. The implementation of policies promoting growth and social protection focusing on the interests and prosperity of society as a whole are demanded.
The government ruling forces must at long last tell us how they imagine the role of banks. Do they want the banks to be levers for growth or rather mechanisms that reproduce social inequalities and discriminations?
