Cyprus' Central Bank new governor appointedApril 28, 2012 - 16:20 AMT PanARMENIAN.Net - A British university's financial economics professor was appointed Cyprus' new Central Bank governor Saturday, April 28, as the eurozone member struggles to contain a stagnating economy and banking system roiling under heavy exposure to Greek debt, AP reports. Government spokesman Stefanos Stefanou said President Dimitris Christofias wished Panicos Demetriades every success in the "difficult task" of helping to return the eurozone member's beleaguered banking system to solid ground. The 53-year-old Demetriades, who gained a Ph.D. in Economics at Cambridge University, faces a daunting task amid fears that the island's major banks, which are trying to cope with record losses due to Greek exposure, may need to be bailed out. Cyprus' bank woes have been primarily responsible for the country's credit rating being reduced to junk by two of the three major international ratings agencies and leaving it unable to borrow from international markets because of the prohibitively high interest rates. The island is relying on a low-interest, €4.5 billion ($5.95 billion) Russian loan to get by this year and has promised to stick to a deficit target of 2.5 percent of gross domestic product. Finance Minister Vassos Shiarly has said the government is ready to step in and prop up the banks if they can't raise an estimated €1.5 billion ($1.97 billion) on their own to meet recapitalization targets. His ministry has already drawn up contingency plans for such a move. Fitch credit ratings agency - the sole agency to keep Cyprus' rating at a step above junk - said Friday that raising private capital will prove difficult, and Cypriot banks - especially Cyprus Popular Bank - may need government or international support. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | U.S. welcomes Armenia, Azerbaijan’s border delimitation announcement Blinken said it is an important step towards concluding a durable and dignified peace agreement. Residents Of border villages protest as Armenia, Azerbaijan agree on delimitation Residents of several Armenian communities in the northeastern Tavush province began protests late on Friday. European Parliament to discuss repression in Azerbaijan The European Parliament will discuss repression of civil society in Azerbaijan on April 24 PACE wants concessions from Azerbaijan to accept Baku back A PACE co-rapporteur said that Azerbaijani authorities must make certain concessions so that the country can return to PACE. |