Presidential candidate Stavros Malas said on Tuesday he would set up an asset management company if elected to tackle the high rate of bad loans (NPLs) that are causing problems across the economy.
Speaking in Nicosia at the presentation of his election programme, Malas said the country was in dire economic straights because of the NPLs and their effects.
“They are not only a banking problem but also socioeconomic,” he said. “Our proposal is specific, and we believe, enforceable.”
Malas, who is backed by main opposition AKEL, proposed the creation of an asset management firm in which banks, the central bank and the state would participate.
Banks, he said, would transfer bad loans relating to primary residencies and small business premises that cannot be restructured to the company.
He said banks will receive shares in exchange for the loans they transfer and the state will also participate with a small sum “without burdening taxpayers.”
Malas said the entire administration programme was based on the strategic objective of gradually redrawing the island’s growth model so that the economy is robust.
“An economy that is not based on opportunistic development and external factors,” he said.
His main economic philosophy was to support healthy entrepreneurship, support workers and protect vulnerable social groups. He will drastically tackle social inequality through an open innovation approach without fixations, on the basis of scientific and comprehensive justification of every policy.
On the Cyprus problem, Malas said he would take action immediately after his election by unconditionally adopting the talks procedure proposed by the UN Secretary-General.
Malas said he would immediately seek a meeting with Turkish Cypriot leader Mustafa Akinci in a bid to prepare the ground for the resumption of the talks.
“I will unconditionally accept the UNSG’s position that negotiation should continue from where they were left at Crans Montana and will demand from the Turkish Cypriot leadership to do the same,” he said.
From then on, Malas said he was prepared to discuss the remaining issues of the internal aspect in an interrelated way.
“I am convinced that, provided we agree on these, a prospect for a comprehensive solution of the Cyprus problem on the basis of the agreed framework of a bizonal, bicommunal federation is created.”
Towards that, the Malas administration will promote rapprochement and the reinforcement of bicommuncal cooperation.
“Without trust between Greek Cypriots and Turkish Cypriots efforts for a solution, and more importantly, the implementation and functioning of a solution, cannot be supported effectively.”
