President Christodoulides has warned against proposals to tax excess bank profits, calling the parliamentary discussion a “dangerous approach” during a speech at the annual general meeting of the Cyprus Land and Building Developers Association on Thursday.
Christodoulides said that while banks “must do what they ought to,” policymakers should be “particularly careful of approaches that sound good but have not yielded any positive results where they were tried.”
“We have seen in other EU member states that such proposals did not bring results. Where these measures were adopted, governments were forced to withdraw them because they had absolutely no effect,” the president said.
He added that while banks should reduce interest rates and find ways to do so, “certain ideas being promoted and discussed in parliament today will not offer any positive outcome for society or the Cypriot people.” Instead, he warned, they would create more problems.
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