Christodoulos Patsalides Sworn in as New Central Bank Governor of Cyprus
In a strategic move, Cyprus has appointed Christodoulos Patsalides as the new Central Bank Governor, just ahead of the critical ECB monetary policy meeting set to take place in Frankfurt. Patsalides, who previously held the position of deputy CEO at the Bank of Cyprus, was officially sworn in on Tuesday. This timely appointment allowed him to step into the role before the expiration of the deadline for notifying the ECB of its new council member.
The announcement on Monday marked a significant transition for Patsalides, who has been serving as the president’s special advisor on economic affairs since Nikos Christodoulides’ election in March 2023. With a history of being groomed for the position of CBC Governor and once considered for Finance Minister, Patsalides’ appointment puts to rest any speculation about his taking up the post of Financial Ombudsman.
At 62, Patsalides brings extensive experience back to the central bank, where he began his career over three decades ago. His tenure at the Bank of Cyprus, which spanned 25 years and saw him rise to Chief Operating Officer and Deputy CEO, is complemented by his recent consultancy work in various financial sectors.
The legacy of financial leadership runs in his family, with his father Andreas Patsalides having served as Finance Minister under two presidents before joining the Bank of Cyprus leadership.
During his swearing-in ceremony, President Nikos Christodoulides charged Patsalides with continuing the central bank’s restructuring efforts and maintaining Cyprus’ economic pillars for sustainable development. He highlighted the disparity between lending and deposit rates in Cyprus as a challenge that needs addressing to ease the burden on businesses and households.
Patsalides acknowledged Cyprus’ economic strengths in his response, citing recognition from foreign investors and rating agencies. He emphasized growth, inflation reduction, unemployment decrease, and public debt reduction as key factors contributing to Cyprus’ progress among European partners.
However, opposition party AKEL has expressed concerns over Patsalides’ appointment, referencing his role during the banking crisis and scandals at the Bank of Cyprus. They questioned the message behind this decision, given past controversies involving Patsalides during the banking crisis.
President Christodoulides refrained from directly addressing AKEL’s criticism but pointed out that during AKEL’s administration, finance ministers were also drawn from banking backgrounds.
As Patsalides takes on his new role, he has received congratulations from various quarters, including the Laiki depositors’ association. With outstanding issues still pending, there is an eagerness to engage with the new Governor to address these concerns and move forward.
