M. Keraunos: Firm 'No' to New Tax on Banks

Finance Minister Makis Keraunos has sent a strong message to parties proposing new taxes on banks. In an interview with 'Phileleftheros', he urged AKEL and ELAM to weigh all the data, as European supervisory authorities disagree.

Mr. Keraunos emphasized that Cyprus has begun repaying a €6.5 billion loan from the European Stability Mechanism and is one of the few EU countries that taxes the banking system twice. He pointed out the need for additional provisions and capital, according to supervisory guidelines, and warned of the risk of excessive liquidity.

Referring to the tax reform, the minister stressed that it affects the majority of citizens and that those below the tax-free threshold of €22,000 are supported through the plans of the Deputy Ministry of Social Welfare. He also mentioned the pension reform, which will increase low pensions, and Cyprus' successful exit to the markets.

Regarding foreclosures, he stressed that it is not a simple issue, and rejected claims of populism regarding support for citizens.