Central Bank of Cyprus Governor Athanasios Orphanides (photo) declined to comment on whether he has been offered a second term, as uncertainty persists as to who will lead the institution from next month.
“From an institutional point of view it is the president of the republic, I believe, who will have to answer to related questions” on the governorship, Orphanides said at an event in Nicosia on Wednesday.
“As far as I am concerned, I serve faithfully according to the commitment that I made when I accepted my appointment as governor of the Central Bank of Cyprus until the end of my term.”
A clash between Orphanides, a former US Federal Reserve economist who sits on the European Central Bank’s Governing Council, and Cypriot President Dimitris Christofias over fiscal policy and the pace of reforms has overshadowed the appointment decision.
Cyprus’s economy is reeling from its exposure to Greece, its credit rating has been slashed to junk and the government is shut out of financial markets.
In 2008, Orphanides refused to sell the central bank’s gold reserves and transfer the profit to the government.
He also angered Christofias with repeated criticism of budget policy. Orphanides’s first term ends in May.
[Bloomberg] - Ekathimerini.com