New Central Bank Governor Takes Office In Cyprus

by Philip Morton, Investors Offshore.com

15 May 2002

The new Cyprus Central Bank Governor assumed his position this week, revealing that he is 'filled with awe' at the duties which come with the job.

Christodoulos Christodoulou, a former Interior and Finance Minister announced earlier this week that he is 'faced with an important challenge', but added that: 'My vision is to see Cyprus a full member of the European Union within the timetable set, and the island joining the eurozone.'

Although President Glafcos Clerides has come under fire from some sectors of the media and the public for failing to appoint someone with more specific economic expertise to the position, the President defended his choice earlier this week, arguing that Christodoulou has a broad knowledge of economic affairs, and possesses a great deal of integrity, a quality essential in such a position.

The Central Bank's responsibilities and remit are set to grow even further in July, when the House will amend the Constitution in order to ensure that it enjoys complete independence and autonomy with regard to policy formation and decision making.

The new Central Bank Governor will supervise the lifting of restrictions on short-term capital movement, one of the conditions of EU accession, as one of his first tasks in the position, and will also need to oversee the restructuring of rules for offshore companies based on the island.

He told Central Bank officers earlier this week that his main priority, other than ensuring the smooth passage of changes in the financial sector necessary to secure entry to the European Union, will be to make sure that the jurisdiction retains its reputation as a respected centre for international business.

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