Discussion Forum – physical event
Friday 15 September 2023
18:00-20:00
Anatomy of the Cyprus Economic and Banking Crisis 2008-2013: An Assessment of What Really Happened and Why
Speaker: Mikis Hadjimichael, Economic and financial advisor, former senior advisor to the Chairman of the Board of the Bank of Cyprus, and former senior official of the Institute of International Finance (IIF) and the International Monetary Fund (IMF)
Chair: Ioannis Tirkides, Manager Economic Research at Bank of Cyprus, and President of the Cyprus Economic Society
Venue: Bank of Cyprus Cultural Foundation, 80 Faneromenis Street, Nicosia 1011
Abstract: More than ten years since the dramatic events of March 2013, there seems to be more consensus on the broad causes of the crisis. Yet, there is still no succinct and comprehensive account of what really happened and why. The discussion forum will address all the related questions, including the built-up of vulnerabilities and the weaknesses in the assessment of the related financial stability risks and in evaluating the proper timing and nature of the needed policy options. There were proximate causes to the crisis such as the bursting of the housing bubble and the impact of the Greek debt restructuring on the capital of the two largest banks in Cyprus, among others. The true origins, however, relate to the escalating vulnerabilities and distortions in the banking system; the ineffective bank supervision; the emergence of large budget deficits; the apparent lack of an appropriate framework for analyzing financial stability risks; the long delay by the government in seeking financial assistance from the troika and the government’s unwillingness to reach an agreement once a program request was finally made. These will be discussed.

Discussion Forum – physical event
Tuesday 27 June 2023
18:00-19:15
Optimum currency areas: the euro and its challenges
Speaker: Miranda Xafa, CEO of E.F. Consulting, Greece and formerly IMF economist and member of the Executive Board, Chief Economic Advisor to Greek PM, Constantine Mitsotakis
Chair: Ioannis Tirkides, Manager Economic Research at Bank of Cyprus, and President of the Cyprus Economic Society
Venue: Ceremony Hall of the University of Cyprus, 75 Kallipoleos Avenue, Nicosia
Abstract: The euro is a currency without a state, and the euro area is a monetary union without a political union. Now, more than 20 years after its introduction, and about 30 since the Maastricht Treaty, the euro has gone through many oscillations, from the initial exuberance that it will accelerate convergence among member states and boost growth, to the realities of the crises of the 2010s, and increasing divergences among member states. Today foremost, the geopolitical realities once again, bring to the forefront new currency and economic risks, associated with de-Globalisation and with de-dollarization. Amidst this new emerging global order, and its own realities of divergence and fiscal imbalances, we ask the question what of the euro, its challenges, and its future.