The Republic of Cyprus` efforts to return to the international markets is a step in the right direction, Managing Director of the Eurobank Group Christos Megalos has said, noting that this action will give banks the possibility to follow up with other moves.
“The messages coming in are very positive”, he said, speaking on Tuesday to journalists. He added that if things continue to go smoothly it is very possible that the actual cost of borrowing for the Republic of Cyprus will be a pleasant surprise in relation to what it was just before it was excluded from the international markets in April 2011.
Group Deputy Managing Director Fokion Karavias said on his part that Cyprus` return to the international markets will send a message that international funds trust the Cypriot economy, adding that the benefits will be many in relation to restoring trust in the Cypriot banking system and the country`s economy in general.
The timing of return to the markets constitutes a record for both Greece and Cyprus considering the dramatic events and pressure they have had to undergo, Karavias said, referring to the Greek bonds haircut in October 2011 and the haircut of uninsured deposits in Cyprus` two largest lenders after a Eurogroup decision in March 2013.
On his part Managing Director of Eurobank Cyprus Michalis Louis stressed that the path Cyprus is on, is “a one way street”, expressing the conviction that perseverance, patience and commitment to the goals set will ensure that 2014 will be the last year of recession and that 2015 will signal the return to growth.
At the same time he warned that nobody should be complacent, saying that the four previous positive reviews Cyprus has received from its international lenders, known as the Troika (EC, ECB, IMF), should be followed by another four such reviews in order for international credit rating agencies to significantly upgrade Cyprus.
Eurobank chief economist Tasos Anastasatos noted on his part that the Cypriot authorities have managed to win a high credibility profile, by outperforming fiscal targets in the Cypriot adjustment programme, adding that despite the challenges ahead the Cypriot economy`s potential in the long run is a positive one.