RCB welcomed yesterday the lifting of all banking restrictions by the Cyprus government as of Monday.
Last December, RCB CEO Kirill Zimarin had said that it is time for all restrictions to be lifted so that international banks have an incentive and an ability to come to Cyprus, and in essence fund the economy.
The bank has already announced its readiness to expand in the Cyprus market and fund viable projects after the lifting of restrictions, and the relevant decision by the government make these plans easier, said bank Executive Director Sotos Zackheos. According to Zackheos, the ban on the opening of bank accounts by Cypriot customers was possibly the most important restriction as deposits by Cypriots would assist in providing loans. However, he indicated that the bank CEO will make specific announcements in the coming days.
Zackheos continued and said that a programme for the funding of main economic sectors, such as tourism, pharmaceuticals and the food industry, has already been launched. “We now aim to significantly boost the funding of viable projects,” he said, adding that the lifting of restrictions will also attract new deposits from foreigners that felt there were obstacles and now feel that the economy is in its final stage of recovery. He also announced that the bank will increase its branches on the island, hire personnel, and is preparing its own credit card processing centre.
On his part, speaking at the 2nd Banking Forum, RCB CEO Kirill Zimarin said that international banks can play an important role in the recovery of the Cyprus banking system. In recent years foreign banks have gained market share, and now hold 22% of the system, compared to 8% a few years ago.
