The Cypriot economy has recorded a major achievement, as its credit rating is now upgraded to “A” by all the leading rating agencies, Moody’s, Fitch, and Standard & Poor’s, and consolidates its position among the most reliable economies of the European Union, President of the Republic Nikos Christodoulides said in a written statement on Saturday, on the upgrade of Cyprus’ long-term credit rating to “A-” by S&P Global Ratings.

He also called on banking institutions “to respond to the favourable conditions made possible by the sacrifices of the Cypriot people, to support the economy and society by reducing lending rates and at the same time narrowing the gap between deposit and lending rates”.

According to the President, the upgrade by Standard & Poor’s completes the rating cycle for 2024.

“Following successive upgrades, our country is consolidating its position among the most reliable economies in the European Union. The triple upgrade is the culmination of a coordinated and methodical strategy adopted by the Government. A strategy that focuses on fiscal responsibility, investment strengthening, stabilising the financial system and promoting structural reforms,” he underlined.

He added that at the same time, the new upgrade “sealed, confirmed and rewarded the country’s determination to restore its international standing through the implementation of measures that consolidate transparency, legitimacy and cooperation on issues such as sanctions and active participation in international anti-corruption investigations.”

He also said that the positive ratings highlight the significant progress made in stabilising the economy and the financial system, as well as the political will of the Government to behave responsibly away from serving any expediency.

“The responsibility of all of us to support growth and social cohesion is fundamental. Banks, as pillars of the financial system, play a central role in shaping a sustainable economic environment. The State, institutions and citizens expect banking institutions to respond to the favourable conditions made possible by the sacrifices of the Cypriot people. To support the economy and the society by reducing lending rates and at the same time narrowing the gap between deposit and lending rates. Such a self-evident initiative will relieve thousands of households, enhance liquidity and investment activity, while at the same time sending a message of confidence and support to society, strengthening the role of banks as allies of growth”, President Christodoulides stressed.

“This recognition by the Rating Agencies is a vote of confidence in the dynamic and prospects of the Cypriot economy, while at the same time it comes to reward the collective effort of our country, proving that economic growth is the result of joint actions and targeted initiatives. The Government remains committed to this course, aiming to continue to shield the economy, strengthen social cohesion and promote initiatives and additional targeted social policy measures that ensure long-term prosperity and quality in the daily lives of citizens”, he concluded.

The successive upgrades of the Cypriot economy’s credibility and its investment grade ‘A’ rating by all major agencies reflects not only the Republic of Cyprus’ creditworthiness in the international markets, but also the dynamic of the Cypriot economy in an environment of heightened geopolitical risks, as a result of the government’s sound and rational policies in the economy, based on fiscal discipline and growth practices, Finance Minister Makis Keravnos said in a written statement on Saturday on the occasion of the upgrade of the Republic of Cyprus’ credit rating by Standard & Poor’s.

According to the Minister, yesterday’s upgrade by Standard & Poor’s is the culmination of the confidence shown in the government’s economic policy by the major rating agencies with which the Republic of Cyprus has a contractual relationship.

“The government will continue to implement its economic policy that leads to continued stable and sustainable growth, guided by fiscal discipline and financial stability, focusing on important initiatives that provide support to citizens and especially to the underprivileged social classes through sensitive economic policies,” he added.

Source: Parikiaki.com