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Energy Minister Endorses Party’s Continued Role In Government Amid Political Tumult

Strong Support for Government Coalition

In a recent interview with Alpha TV, Energy Minister and Vice President of the Democratic Party (DK) Michalis Damianous made his position unmistakably clear: the party must remain in the government and coalition. His remarks came during an interview with Nikos Neokleous, amidst an environment charged by political controversies.

Political Challenges and Emerging Allegations

Notably, the interview was conducted prior to the unfolding political upheaval surrounding a discredited video and allegations of undisclosed financial contributions from businessmen alleged to benefit either the government or the state. These developments have cast a shadow of uncertainty over the current administration’s handling of complex issues.

Responding to Criticism

When pressed about the recent critical statements made by DK President regarding the management of the electrical interconnection—criticism documented in recent reports—Damianous reaffirmed his stance. He asserted that, as long as the agreed governmental program is on track, the DK must maintain its role in the coalition, a position further supported by the administration’s strategy as detailed in official communications.

Collective Decision-Making and Party Discipline

When asked about the potential scenario in which the DK might oppose his view, Damianous stressed that any decision regarding government participation will be determined collectively by the party’s governing bodies. He emphasized his commitment to upholding these collective decisions, while personally advocating for the party’s continued inclusion in the coalition. His pledge is clear: should the party resolve to exit the government following the controversies, he will adhere to the collective mandate.

Reevaluating Cost Projections

During the interview, Damianous also called for updated financial analyses concerning the electrical interconnection project—a proposal previously contested by Nikolas Papadopoulos, who cited remarks from European Commissioner Jörgensen. According to Damianous, the economic parameters used in earlier cost estimates are outdated, highlighting the necessity for a revised review as the project progresses over the years.

The interview underscores the delicate balance between maintaining political alliances and addressing accountability in the midst of evolving fiscal and governance challenges.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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