Finance Minister Makis Keravnos said that the high lending rates in Cyprus are unjustifiable given the country's relatively low inflation, in an interview with the Sunday edition of "Phileleftheros," newspaper.

"For a Eurozone country with relatively low inflation like Cyprus, very high borrowing rates are not justified," Keravnos noted. He highlighted the complications arising from the Eurozone's unified monetary policy, which, he said, often creates challenges, including the current situation.

Keravnos revealed that he has personally raised this issue during Eurogroup meetings, where his concerns were positively received by other Finance ministers.

He also emphasized that the latest spring forecasts from the European Commission indicate that Cyprus's economy is on the right track.

"Our goal is to maintain this positive trajectory while recognising the multifaceted challenges we face," he added.

Saying that he respects the independence of the Central Bank of Cyprus, Keravnos acknowledged that he has frequently advised banks to reassess their interest rate policies.

"Our interventions have yielded results, with banks adopting measures to absorb some of the increased costs from high interest rates and adjusting deposit rates," he noted.

Speaking about geopolitical risks, Keravnos stated that the government's measures are comprehensive, covering sectors such as tourism and energy. He pointed out that balanced economic policies have contributed to maintaining the economy's resilience, achieving positive growth rates, and gradually bringing inflation under control.