The Association of Cyprus Banks says it is cautiously optimistic on the future of the banking sector and the economy in 2016, urging at the same time the Government and the Parliament to continue the necessary reforms and legislative changes in economy.
According to Director General`s Michalis Kammas message in the Association`s Annual Report for 2015-2016, the successful conclusion of the three-year macroeconomic adjustment program enables Cyprus to define its economic policy more autonomously, while it sends a message that Cyprus is back on track.
“This positive development is significant as it creates the circumstances which will attract foreign investments and will enhance new sectors of business activity, building on both our competitive advantages and on emerging opportunities”, he says.
He adds that in light of this, the exit from the macroeconomic adjustment program gives a further impetus to the efforts of the banks, which aim for a healthy economic environment where they will be better able to contribute towards the development of the country.
At the same time, he points out that the constantly evolving international scene does not leave any room for complacency in the management of the economy or in the implementation of measures for the protection of the banking system.
“Taking all these developments into account, we are cautiously optimistic as far as the future of the banking sector and the economy in 2016 are concerned. We hope that the government and the new Parliament will have a fruitful cooperation for the continuation of the necessary reforms and legislative changes in economy”, says Kammas.
As the economy is recovering, he also notes, both the modernization process and the institutional restructuring will have to continue more intensively in order for the economy to regain its path of sustainable growth.
The year 2015, according to the annual report, was marked by significant developments in the Cyprus banking system as well as the economy. It also notes that despite the recent progress however, the problem of non-performing loans has not been eliminated, and it can be seen that greater cooperation is required by everyone, including borrowers.
Click here to see Association of Cyprus Banks Annual Report