Annual general meeting of the Association of Cyprus Banks

The Association of Cyprus Banks held its annual general meeting in Nicosia, attended by Finance Minister Makis Keravnos and Central Bank Governor Christodoulos Patsalides. The event focused on the importance of maintaining a stable legal framework for foreclosures, following a critical opinion from the European Central Bank (ECB) regarding recent legislative changes. Governor Patsalides warned that current amendments could erode financial discipline, threaten payment culture, and increase mortgage interest rates. Finance Minister Keravnos noted positive economic indicators, including a 3.8% growth rate for 2025 and public debt projected to fall to 50% of GDP. Association President Panikos Loukaou criticized horizontal legislative interventions as populist and harmful to financial stability. Bank officials argued that these measures do not protect vulnerable borrowers but instead reward strategic defaulters and raise borrowing costs. The speakers emphasized that a healthy banking sector is essential for broader economic stability and future growth.