Irena Georgiadou: Cyprus Has Strong Growth Prospects

Irena Georgiadou, Chairwoman of the Hellenic Bank Group, spoke at the Cyprus Economic and Investment Summit in New York, on September 22.

At the Summit, Georgiadou reinstated the statement of Georgiades, the Finance Minister, that the 2017 projections for growth are exceeding 2.5%, which is much higher than the EU average.

She stated that “Cyprus location is key. Given the geopolitical turbulence in the eastern Mediterranean and generally the Middle East region, Cyprus, is considered the safest and most stable jurisdiction, offering opportunities for investment, commercial exchange and economic activity.”

Georgiadou went on to say that Cyprus has strong growth prospects as new opportunities are leaping up across all industries. She added that Cyprus is a well diversified economy; however industries like shipping, tourism and hospitality as well as emerging sectors of energy and technology stand out.

Additionally, she said that lately there are many Israeli based companies that either relocate or open offices in Cyprus. This is due to the stable tax system, regulatory and legal framework based on EU and British law offer the stability and visibility conditions that corporates and investors look for.

Talking about the banking sector, Georgiadou said “The banking sector has changed in the past 3 years. Our systemic banks in Cyprus, and Hellenic Bank is one of them, are supervised by the European Central Bank, which from a regulatory perspective means that we have a single rule book to follow across Europe, but from a commercial perspective it means that we are marching towards cross-border banking integration. In other words, Cyprus banks can operate across the Eurozone.”

“The banking sector in Cyprus has been totally reformed in the past few years, and it is now based on much stronger foundations. A lot of emphasis is placed on corporate governance; the capital adequacy of Cyprus Banks is well above the EU average. And most importantly Cyprus Banking institutions have ample liquidity and are able to support the growth of Cyprus economy through the provision of new lending,” she added.

“The progress made in the Cyprus Banking Sector is also often noted by the European Commission, the European Central Bank and the IMF, but most importantly it is reflected in the markets and the rating agencies.  The rating agencies keep upgrading us and we have a positive outlook. Deposits are flowing in the system,” she said.  

Concluding she said “The most challenging side effect of the economic crisis is the high level of Non Performing Loans in the system, which is however being decisively addressed. We have all legislations in place, all tools, the right tax incentives and the appetite to do all the right things in this field.”

About

The Cyprus Economic and Investment Summit, organised by IMH in New York, outlines the Government’s vision for the country’s economy and its plans for continued stability and growth. The investment climate and investment opportunities are discussed, together with the advantages of Cyprus as a leading international business, financial and funds centre in the region. The objective is to explore opportunities for cooperation in the areas of international business, financial services and set up of funds as well as to identify areas for Foreign Direct Investment in sectors of interest.