The Central Bank of Cyprus supports the Cypriot Government’s decision to request financial support from the European Financial Stability Facility (EFSF), which has been triggered by the need to recapitalise those Cypriot banks that have not been able to secure sufficient private capital by the European Banking Authority deadline of 30 June 2012. In these challenging economic times, in which pressures on public finances are already considerable, it is vital to restore the banking system’s ability to promote economic growth as soon as possible. It is also necessary to take all the appropriate steps to contain possible future contagion emanating from the operations of Cypriot banks in other countries.
Financial support from our European partners will help to ensure that these objectives are achieved in a timely and orderly fashion, while safeguarding the stability of our financial system and the economy as a whole.
The Central Bank of Cyprus looks forward to working closely with the European Central Bank, the European Commission and the Cypriot Government to help ensure the success of this endeavour.