Finance Minister Makis Keravnos said he expected inflation to improve by the end of the year, after meeting with European Central Bank chief, Philip Lane on Thursday.
Speaking after the meeting, Keravnos said there had been a very productive exchange of views on issues that concern not only Cyprus but the whole of the EU, such as inflation, interest rate rises and the causes of this situation in the economy.
“I listened with great interest to Lane’s views on how things can develop and I think that patience and an optimistic outlook are needed,” he added.
Replying to a question about the state of play of inflation by the end of the year, the Minister said that, based upon his discussions with the ECB representative, they are optimistic that the situation will balance out by the end of the year.
Asked whether he had shared with Lane his thoughts on raising interest rates and taking measures to combat non-performing loans and foreclosures, he said that the ECB was aware of the problems facing the Cypriot economy and the efforts being made by the authorities to ease the problems.
The Minister added that there did not seem to be any particular concern about non-performing loans increasing, adding that from his contacts with bank management and administrators, they don’t seem particularly concerned because the financial institutions themselves are implementing measures to avoid an uncontrollable rise. “They understand that nobody wants to see an increase in non-performing loans,” he concluded.