ECONOMY

Former central bank governor blamed for losses

Cyprus government spokesman Stefanos Stefanou said former Central Bank Governor Athanasios Orphanides (photo) is responsible for billions of euros in losses sustained by Cypriot banks last year. Orphanides ?deficiently exercised his duties,? causing ?billions of euros in losses for the banks and the Cypriot economy,? Stefanou said on Tuesday.

Stefanou was responding to an open letter from Orphanides to Cyprus President Dimitris Christofias, published Tuesday by the Inbusiness website. In the letter, Orphanides said Christofias and his communist party AKEL are carrying out a ?relentless communication war? against the Cypriot banking system. The president delayed corrective fiscal measures and consented to the write-down of Greek government bonds, and is responsible for 4 billion euros in bank losses, Orphanides alleged in the letter. [Bloomberg]