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Borrowers Association Welcomes Extension of Support Measures

economy support measures

The Cyprus Borrowers Association hails the government’s extension of support measures to ease economic strain on households and businesses, focusing on cutting lending rates and reducing non-performing loans. Finance Minister Makis Keravnos anticipates progress by bridging the gap between deposit and loan rates, aiming to boost economic activity and alleviate financial burdens on Cypriots.

What are the recent government support measures extension praised by the Cyprus Borrowers Association?

The Cyprus Borrowers Association commends the extension of government support measures aimed at relieving economic pressure on households, borrowers, and small to medium-sized enterprises. Key actions include a sustainable reduction in lending rates and a concerted effort to reduce non-performing loans, fostering a healthier economic environment.

A Time of Relief for Borrowers and Businesses

The president of the Cyprus Borrowers Association (Syprodat), Costas Melas, has openly praised the recent decision of the Cabinet to prolong several government support measures. This move is seen as a beacon of hope for citizens facing economic strain. Melas expressed that the focus should now rest on crafting immediate and effective strategies to bolster households, borrowers, and small to medium-sized enterprises that form the backbone of the economy.

In tandem with these supportive actions, the Finance Minister Makis Keravnos, during his speech at an important annual banking event, shared his anticipation of forthcoming progress. His goal is to bridge the divide between the rates of deposits and loans. It’s a balancing act that could stimulate economic activity and provide some relief to the financial burdens on Cypriots.

Calls for Sustainable Rate Reductions

In addition to welcoming the support measures, Melas drew attention to the Finance Minister’s advocacy for a sustainable reduction in lending rates. This perspective was particularly noteworthy against the backdrop of the European Central Bank’s recent rate cut. The slight adjustment of 0.25 points may seem modest, but it carries significant implications for loan repayment schedules and the broader financial landscape.

Furthermore, there’s a pressing call to action for banks, asset purchasing entities, and credit management firms. They’re urged to ramp up their efforts to substantially trim down the volume of non-performing loans (NPLs). Such proactive measures would not only benefit the financial institutions but also their clientele, fostering a healthier economic environment.

The Minister’s Recommendations and Expectations

At the annual gathering, Keravnos conveyed that, while respecting the independence of the Central Bank of Cyprus, he has consistently recommended a reassessment of interest rate policies by banks. His interventions have yielded some positive outcomes. Indeed, banks have taken strides in absorbing increased costs due to rising interest rates and in shaping their deposit rate offerings.

Yet, the Finance Minister’s expectations extend further. He envisions drastic actions in two critical areas: the narrowing of the gap between deposit and lending rates, and, equally important, a determined descent of lending rates following the ECB’s mild rate reduction. This initiative is not simply about numbers; it echoes the distress of families and businesses and addresses a fundamental obstacle to economic growth and the resolution of pressing social issues, such as housing.

In his heartfelt address, Keravnos underscored the urgency felt by households and businesses. He reflected on the pervasive concern about the level of lending rates, and how they hinder economic development and the tackling of societal challenges. It’s a call for empathy, understanding, and tangible action from financial institutions.

A Journalist with an Eye for Business

Away from policies and proclamations, let’s take a moment to appreciate the work of those who bring these stories to light. Journalists like Souzana Psara dedicate their skills to reporting on the business milieu, startup ventures, and technological advancements. They keep their fingers on the pulse of industry transformations, ensuring that the public stays informed about the latest developments and trends that shape our society.

What are the recent government support measures extension praised by the Cyprus Borrowers Association?

The Cyprus Borrowers Association commends the extension of government support measures aimed at relieving economic pressure on households, borrowers, and small to medium-sized enterprises. Key actions include a sustainable reduction in lending rates and a concerted effort to reduce non-performing loans, fostering a healthier economic environment.

What is the significance of the recent decision to prolong government support measures for borrowers and businesses?

The decision to extend government support measures is seen as a beacon of hope for citizens facing economic strain. It aims to provide immediate relief to households, borrowers, and small to medium-sized enterprises, which are vital for the economy.

What recommendations did Finance Minister Makis Keravnos make regarding interest rates and economic activity?

Finance Minister Makis Keravnos recommended a reassessment of interest rate policies by banks to bridge the gap between deposit and lending rates. He also emphasized the importance of reducing lending rates to stimulate economic activity and address financial burdens on Cypriots.

How are banks and financial institutions expected to contribute to the economic environment according to recent statements?

Banks, asset purchasing entities, and credit management firms are urged to take proactive measures to significantly reduce the volume of non-performing loans. This would benefit both financial institutions and their clients, fostering a healthier economic environment.

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