Outgoing Cypriot Central Bank Governor Athanasios Orphanides said on Monday the island?s economy was at a critical juncture, and that a Greek debt write-down, which has impacted the island?s banks, helped trigger a vicious cycle in the system.
Orphanides, whose term in office expires on Tuesday, told lawmakers in parliament fiscal measures taken by authorities were a step in the right direction, but noted with concern comments from officials that there had been a deviation from fiscal targets in the first quarter of the year.
?The economy of our country is going through critical times. The right handling [of this] is required. At stake is not only the economy of Cyprus and the well-being of its citizens, but its national reputation and standing,? said Orphanides. [Reuters]