The progress of the Cypriot economy, the banking system and the Government's recommendations to the banks, particularly with regard to interest rates, charges and consistent loan borrowers, were among the issues discussed, on Monday at a meeting between President Nikos Christodoulides and Chief Executive Officers of Bank of Cyprus, Panicos Nicolaou and Hellenic Bank, Michalis Louis, respectively.

Government Spokesperson, Konstantinos Letymbiotis, announced afterwards a new meeting on Wednesday, December 18, at 8 a.m to discuss specific recommendations, after they have been evaluated by the two banks.

In his statements after the meeting, Letymbiotis said that it was a meeting that took place after the completion of the cycle of ratings by all international rating agencies that now rate Cyprus in investment grade "A".

He added that this is proof of the Government's sound economic policy and a practical vote of confidence, noting that “it is certainly the result of the collective effort of the Government and the Cypriot people.”

Letymbiotis said that the developments are such that the banks can take actions that will provide relief for responsible borrowers and for specific groups of the population.

"Today, the President of the Republic conveyed his ideas, his proposals, his suggestions to the CEOs of the Bank of Cyprus and Hellenic Bank, particularly on issues related to interest rates and charges, with an emphasis, of course, on the responsible borrowers and on groups of our population, which we can put at the forefront," Letymbiotis added.

He also said that the next meeting with President Christodoulides has already been set for Wednesday, December 18, at 8:00 am, during which Finance Minister, Makis Keravnos, will also be present, in order to discuss the specific recommendations, after they have been evaluated by the CEOs of the two banks. 

Replying to questions, Letymbiotis said that through this responsible policy and responsible dialogue, "we always aim to have this improvement in the real economy, which has of course to do with the households and the citizens."

He noted that the upgrades of the Cypriot economy will have a direct and indirect impact on both households and citizens, underlining that "a necessary condition is the stability of the Cypriot economy". At the same time, he referred to the measures announced by the Government to support households, housing, the installation of renewable energy sources, urban incentives and others.

In his statements, Nicolaou thanked President Christodoulides for the initiative to convene the meeting, saying that "there was a very useful exchange of views on issues concerning the broader course of the Cypriot economy and the banking sector in particular."

He said that ahead of the new meeting with the President, each bank will discuss internally and will come back independently with its own views.

Louis also thanked the President for the meeting and the opportunity to exchange views, noting that he endorses what the Bank of Cyprus CEO has said "and we will come back with specific recommendations on Wednesday morning, perhaps for final decisions."