Speaking on state radio on Monday, Georgiades linked the opportunity for local lenders following the government's successful bid to attract €750 million from foreign investors with the upcoming stress tests by the
"My view is that Cypriot banks should seek to recapitalise even before the stress tests," he said. "Foreign investors are confident in the prospects of our economy."
In the period since
"Therefore," he added, "I feel that this goal is achievable."
But he was quick to clarify that he was referring not only to the
"I would like to see all banks that will undergo the stress tests recapitalise," Georgiades said, adding "with the exception, of course, of the co-operatives, which have been fully recapitalised via the adjustment programme."
Among the provisions of last year's €10 billion bailout was the full recapitalisation of the co-op banks with €1.5 billion of loan money, in exchange for their consolidation and restructuring.
After four successful quarterly progress reviews by international lenders and a consistently shallower than expected recession,
"This will be used to repay a big part of existing, more expensive and more short-term internal borrowing, which had been exerting constant pressure on public debt management," Georgiades explained. "It will also help boost liquidity, and at the same time it will also enable the release of funds currently trapped in the system."
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