Central Bank of Cyprus (CBC) Governor Chrystalla Giorghadji on Monday warned there should be no complacency in the management of public finances due to improvement in fiscal conditions and in particular the increase in public revenues.
The CBC Governor’s warnings come as ruling Disy together with Diko in co-operation with the government, is working on a package of incentives for consistent borrowers, increases in low pensions and a reduction in excise tax on fuel, totalling around €100 million.
“Positive developments in public revenue should not lead to complacency and unreasonable increases in government spending. The public debt is still very high,” Georghadji warned during a session of the House Finance Committee during discussions on the state budget.
At the same time, she also referred to the tightening of controls by the Council of Europe’s Moneyval Commission on money laundering that has already begun, saying that a bad evaluation would have “multiple impacts” as various investors including Cyprus’ international partners.