Former Governor of the Central Bank of Cyprus and ECB Governing Council member returns to University

Posted by ap507 at Jun 25, 2014 10:10 AM |
Professor Panicos Demetriades participated in talks that saved Cyprus from bankruptcy

Professor Panicos Demetriades (pictured), one of Britain’s leading academics in financial economics, has returned to the Department of Economics after two years’ service as Governor of the Central Bank of Cyprus and ECB Governing Council member.

He took over the post during a tumultuous period for the Cypriot banking system and was responsible for navigating the central bank through unchartered waters, involving a major restructuring of the country’s bloated banking sector and an unprecedented bail-in of unsecured creditors, a first in recent European financial history. 

The success with which these new crisis management tools were applied to Cyprus has convinced Europe to utilise them more widely, which will help to considerably reduce the taxpayer burden in future bank bailouts.  

He has suggested that the island's economy is already showing signs of recovery having contracted by 5.4 percent in 2013 - significantly less than the initial lenders' projections of an 8.7 percent drop in output. They forecast a further 4.8 percent dip in 2014 before returning to growth in 2015.

Professor Demetriades suggests that a more competitive climate with the reduction of labour costs and resilience in tourism, shipping and the broader services sector would continue to support a return to more sustainable growth.