Cyprus central bank sees shallower 2014 GDP drop than 4.2 percent

Cyprus’s Central Bank governor on Wednesday said this year’s recession on the bailed-out island could be shallower than the 4.2 percent decline anticipated by its international lenders.

Chrystalla Georghadji, who also represents Cyprus on the governing council of the European Central Bank, said the island would fully dismantle capital controls when confidence in the banking sector was fully restored.

Efforts to shore up the financial industry, badly hit by the March 2013 bailout, were beginning to yield results, she told a news conference in Nicosia. [Reuters]