At the same time, the outlook for Cyprus is recorded as "negative", a fact that foretells further downgrade, while, if Moodyʼs remains faithful to its "traditions", downgrading of Cypriot banks should be expected.
Now, only Fitch keeps Cyprus one step above the "garbage", a fact that is expected to change and now it should be expected to be downgraded by the third rating agency. Although expected, the downgrade underscores the need for new measures in public finances, while at the same time the whole "issue" of banks must be closed as soon as possible.
Despite the persistent reports of some major shareholders, the solutions sought by the banks have not yet been clarified, especially considering the amount of non-performing loans in the Greek market. At the same time, however, the government is sending an important "message" to the European Central Bank (ECB) that the Republic of Cyprus intends to provide clear solutions to its own problems, in order to enable the approval of Frankfurt. of Dimokratia's applications for the purchase of Cypriot debt and for the relaxation of the conditions under which Cypriot bonds held by banks are accepted, in exchange for liquidity.
Finally, the decision emphasizes (indirectly but clearly) that large investments are not a solution for the economy, as long as structural problems are not addressed.
Source: KATHIMERINI