Mr. Christodoulou comments on bank pressures to citizens for the repayment of investing loans.

The Governor of the Central Bank, Christodoulos Christodoulou, avoided commenting on last week’s CSE rises, stating that the Minister of Finance and SEC’s Chairman are more competent in this matter.

However, Mr. Christodoulou made clear statements over the issue of citizens’ complaints concerning banks’ pressures for the repayment of investing loans. Specifically, Mr. Christodoulou pointed out that “the Central Bank is obliged to underline to commercial banks that they must or must have foreseen the security of loans granted either for investments or for other purposes”.

Mr. Christodoulou supported that “this money does not belong to banks but to Cypriot citizens. Therefore, banks must ensure the repayment of the loans granted, for the benefit of themselves as well as for the benefit of their shareholders”.

When, Mr. Christodoulou was asked whether banks have removed the facilities to all those who have not repaid their loans, the CB Governor replied that “no bank can claim that the Central Bank presses small shareholders, who owe ten or twenty thousand pounds. On the contrary, the Central Bank focuses on loans that amount to several million of pounds”.