03/05/2004 12:26
Hellenic Bank Strategic Development Manager, Yiannis Telonis told StockWatch on Monday that as soon as Cypriots ascertain that the Central Bank “has taken seriously the issue of monetary stability”, interest rates will gradually become lower. Invited to comment on the Central Bank’s decision to increase its basic interest rate by 1%, Mr. Telonis expressed his view that Cypriots will not turn to loans in euro, due to the fluctuations of the exchange rate of the Cyprus pound.
Mr. Telonis also stressed the need to strengthen the psychology of the Cyprus economy, since the extension of uncertainty in relation to the Cyprus problem will continue to affect it negatively.
Banks must be careful
Despite the fact that the Hellenic Bank will have a “non substantial benefit” in its financial statements, other sectors of economy (such as constructions) might be affected negatively, Mr. Telonis said without excluding the possibility that the construction industry “has been overheated” for the past three years. However, Mr. Telonis expressed his optimism that the construction sector will overcome the recent successive “shocks”, such as the increase in interest rates and the imposition of VAT on properties.
Sampson: “It will pass…”
Similarly, Chairman of the Contractors’ Association, Demetris Sampson said that the different environment in which the Cyprus construction sector is activated in, has become an obstacle but it will not curb its development.
Challenges
The environment in the construction sector will not be differentiated only due to the increase in the finance cost and the imposition of the VAT on properties, but also due to the ability of the foreign construction companies to operate in Cyprus. “Foreign construction companies will seek for cooperation with the Cyprus companies, especially after the solution of the Cyprus’ issue”, Mr. Sampson noted.
Tofarides: “Tough days…”
Land Developers’ Association, Lakis Tofarides said that the increased cost of borrowing and the imposition of VAT on properties will affect negatively the house prices. “For this, the Association will continue to protest”, he concluded.
Mr. Telonis also stressed the need to strengthen the psychology of the Cyprus economy, since the extension of uncertainty in relation to the Cyprus problem will continue to affect it negatively.
Banks must be careful
Despite the fact that the Hellenic Bank will have a “non substantial benefit” in its financial statements, other sectors of economy (such as constructions) might be affected negatively, Mr. Telonis said without excluding the possibility that the construction industry “has been overheated” for the past three years. However, Mr. Telonis expressed his optimism that the construction sector will overcome the recent successive “shocks”, such as the increase in interest rates and the imposition of VAT on properties.
Sampson: “It will pass…”
Similarly, Chairman of the Contractors’ Association, Demetris Sampson said that the different environment in which the Cyprus construction sector is activated in, has become an obstacle but it will not curb its development.
Challenges
The environment in the construction sector will not be differentiated only due to the increase in the finance cost and the imposition of the VAT on properties, but also due to the ability of the foreign construction companies to operate in Cyprus. “Foreign construction companies will seek for cooperation with the Cyprus companies, especially after the solution of the Cyprus’ issue”, Mr. Sampson noted.
Tofarides: “Tough days…”
Land Developers’ Association, Lakis Tofarides said that the increased cost of borrowing and the imposition of VAT on properties will affect negatively the house prices. “For this, the Association will continue to protest”, he concluded.
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