Speech by the President of the Republic Mr Nicos Anastasiades
at the event for RCB Bank’s 20th Anniversary
Dear Minister ,
Dear Mr Kostin,
Dear Mr Zimarin,
Ladies and Gentlemen,
First of all, I would like to warmly welcome to
Cyprus, Minister of Economic Development of the Russia Federation, Mr Alexey Ulyukaev
and the President and Chairman of VTB
Management Board, Mr Andrey Kostin.
It is a great pleasure to celebrate with you the
20th anniversary of RCB, an international bank, which has
become an integral part of the Cyprus banking
sector and the country’s economy, but, most importantly, has provided
tangible and substantial support to our country.
Now that our economy is recovering and returning to growth, we can
only applaud RCB’s expansion plan in the local market with the opening of new
branches and the consequent creation of new jobs, as well as the increase in its
loan portfolio to Cypriot businesses.
RCB has also proven over these last two decades that it is a socially
responsible Organization, active within the Cypriot society. This responsibility
does not limit itself to the ten charities that will be supported here tonight,
but also extends to other worthy causes and the promotion of culture and
sports.
I therefore would like to sincerely congratulate all of you at RCB
for making social contribution an integral part of your corporate culture and
modus operandi.
The Cypriot economy is emerging out of its most challenging period to
date.
The last two years are a prime example of what can be achieved with
vision, detailed planning and prudence.
Hard work and the common effort of the public and the private sector
can turn an economy in distress towards stability and prosperity. After almost
four years of contraction, we are witnessing a return to positive economic
growth from the beginning of this year, a growth that is projected to be
maintained. The results are already visible. Last week, Fitch Ratings upgraded
the Cyprus economy by two notches, with a positive outlook, pointing out the
positive fiscal performance and the return to growth. We were successful
in entering the credit markets today and I congratulate the Minister of
Finance.
Substantial results have been achieved in the banking sector as well.
The banks have been restructured and recapitalized and are refocusing their
operations with a prudent risk-based approach to lending.
Admittedly, for many years, the banking sector adopted poor risk and
credit management practices. With the economy in recession several Cypriot banks
were faced with an urgent need to reconsider their strategies.
Today however, confidence and stability have been restored and all
restrictions and capital controls imposed in March 2013 have been abolished
earlier than expected.
Obviously the banking sector has still challenges to face: The large
number of non-performing loans and consequently the ability of banks to supply
new credit to the economy. To this end, the improved legal framework on
foreclosures and insolvency is now in force, and it is indeed a critical step
towards tackling the high level of non-performing loans.
With a responsible fiscal policy visible through the performance of
the public finances, with emphasis on investments, coupled with the targeted
structural reforms that we are promoting, we are confident that the economy will
be on solid ground in the medium and long term.
Such policies, to name a few, involve the fostering of the financial
sector and the attraction of strategic partners/investors in the
telecommunications and ports industries, the maintaining of a stable tax
framework with added incentives for investments and the care for more vulnerable
groups.
Congratulating you once again on RCB 20th anniversary,
please accept our very best wishes for every success.
