The Central Bank of Cyprus (CBC) in a press release on the 50th anniversary of the Turkish invasion of Cyprus said that the grave conditions caused by the invasion highlight the need for a constant vigilance and a sustainable effort to further strengthen the Cypriot economy and to strive for a solution to the Cyprus problem.

“Apart from the national consequences, the 1974 invasion had grave social and financial impact,” the CBC said, recalling that the forceful displacement of 200,000 Greek Cypriots from their homes in the northern part of the island, where the 70% of the country’s GDP was generated, led the economy on the brink of destruction.

“By the end of 1974, Cyprus presented an image of a completely destroyed country with its survival at risk,” the CBC added.

The CBC also highlighted the actions made in collaboration with the Finance Ministry to address the tragic conditions caused by the invasion, such as facilitating finance for the housing needs of the refugees, the provision of liquidity to banks to offset the loss of assets in the occupied areas, the setting of a ceiling on lending interest rates.

It also, in collaboration with the government, consulted with international organisations such as the IMF, to secure lower rates for loan facilities to Cyprus and established a special fund for projects of priority.

“Today the memory of those tragic conditions, highlights the necessity of a constant vigilance and a sustained effort to further strengthen and protect the economy and more importantly of a solution to the Cyprus problem”, the CBC added.

CNA/GS/EPH/2024

ENDS, CYPRUS NEWS AGENCY