Lagarde List includes 361 accounts with total deposits during 2005-06 amounting to € 827 million of which almost €200 million belong to persons who either are not related to Cyprus or are not resident of Cyprus, Finance Minister Harris Georgiades has said, adding that as regards the other cases the first taxation will be imposed by the end of this month.
In his speech to the plenary of the House of Representatives on the 2016 state budget, Minister said that with the legislative proposal approved today by the Cabinet the Government suggests the extension of the prohibition on filling vacancies in the public service for an additional year
On the non-performing loans, he said that the only other tool which could also be introduced is an asset-management company which would utilize the new legislation and buy loans from banks itself, adding that this option is being examined with its funding to be the main restrictive factor.
The Finance Minister in his speech expressed the hope and expectation that in a year from now the recovery and growth of the Cypriot economy will be even more consolidated and sound in a reunited country while he referred to to the problems that still afflict the economy such as the non-performing loans.
He assured that the effort in relation to the financial system has no aim to return to the past but to create a better and more reliable banking system that would inspire confidence and responsibly manage citizens` deposits and provide loans to the economy and the productive sectors on the basis of appropriate evaluation of the data and capabilities of the borrower.
He stressed that supervision is an important parameter for the proper functioning of the banking system, adding that the new supervisory framework must be rigorous and effective and not bureaucratic or burdensome.
He also said that deposits are being increased for the first time in years adding that one of the major positive developments in the past year was the complete lifting of the restrictive measures imposed after the collapse of Laiki Bank in 2013.
Minister stressed that is important that the lending to the real economy has been resumed with the right criteria and with as lower interest rates as possible, adding that banks have gradually started giving loans during the past year while the de-escalation of interest rates continued.
“We currently have the lowest lending rates we had ever have in Cyprus. But there is room for further de-escalation and therefore efforts should continue,” he said.
He also said that it is encouraging that the pace of restructuring recorded in recent months has accelerated.
As regards the budget deficit he said that we left behind us the deficit policy.