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27 March 2014

Auditor General the new Governor of the Central Bank of Cyprus

Mrs. Chrystalla Yiorkadji, who has served as the island’s Auditor General for 16 years, is the very first woman appointed to the position of the Central Bank’s Governor with effect from 11 April 2014.

Mrs. Yiorkadji had been constantly issuing reports regarding the misuse of government funds and has been recently investigating the now former governor, Mr. Panicos Demetriades, as part of a government examination which aimed to “track down” how he mis-handled the weak banking sector.

After immense pressures caused by the government’s investigations and accusations, Mr. Demetriades, two years into a five-year term, finally caved and handed his resignation to the Minister of Finance, Mr. Haris Georgiades during the Eurogroup meeting of the Eurozone finance ministers in Brussels on Monday, 10th of March 2014.

Mr. Demetriades has previously accused the government of pressuring him and undermining the central bank’s independence, and tensions, as well as open animosity between him and the president, have endured for quite some time. President Mr. Nicos Anastasiades, who had been pressing for Mr. Demetriades’s departure since the banking sector collapsed last year, said that Mr. Demetriades resigned “for personal and family reasons, and because of the prevailing climate”.

Mr. Panicos Demetriades will probably return to his previous job as an economics professor at Leicester University. Former president Demetris Christofias, who appointed Mr. Demetriades to the position, is up to this day, widely blamed for weak administration and bad decisions which led the country to near bankruptcy and the collapse of the banking system. But the ex-government, to its own and Mr. Demetriades’s defense, has a lot to say about Harvard professor Athanasios Orphanides (ex central bank governor), and his failure to detect the problems during the Greek bonds crisis.

New Governor Mrs. Chrystalla Yiorkadji. during this critical period for Cyprus, has a very serious task to accomplish. Among other things, she has to oversee and manage the measures imposed by the ‘troika’ of international lenders (ECB, IMF, European Commission) and make sure that the country’s fiscal policy is in line with plans of recovery, bringing unemployment down and returning to development and prosperity.

Article published by: ServPro Accountants & Consultants, 27 March 2014

 

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