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HARRIS GEORGIADES
18

HARRIS GEORGIADES

CYPRUS

THE RESPONSIBLE STEWARD

Luke Waller

Cypriots can generally be relied upon to give their Greek kin the benefit of the doubt. But as Greece teetered on the brink of “Grexit” during the summer, Cyprus’s mild-mannered finance minister, Harris Georgiades, must have feared he was backing the wrong horse.

Georgiades, 43, who has helped make his island nation a star pupil in Europe’s bailout class, had little support from fellow finance ministers when he urged them to extend emergency aid to Greece and ease its debt burden.

A self-confessed “believer in the free market” who has doggedly implemented the stringent demands of creditors, Georgiades’s solidarity with Athens can hardly have been born of conviction. He had earlier questioned the negotiating tactics of Yanis Varoufakis, his maverick Greek counterpart, drawing the ire of the opposition.

Bonds of kinship aside, self-interest may also have played a role in Georgiades’ support for Greece. As Cyprus prepares to exit its €10 billion rescue program, the last thing he wanted was a meltdown on the mainland scuttling his efforts to turn a final page on the financial crisis.

An incipient economic recovery has taken root under the disciplined stewardship of Georgiades, who close associates have credited with a steady hand and a readiness to “meet or even beat” the demands of Cyprus’ creditors.

Georgiades, who hails from the centerright Democratic Rally party and used to run a family-owned hotel business, has proven tougher than some might have expected given his relative inexperience when he was appointed in April 2013. In his favor, expectations were low: The hated bailout — which imposed losses on savers — had already been agreed to and none of his three predecessors lasted more than 11 months in the job.

It has been a painful path back to fiscal health, however, and Georgiades has faced criticism for heavy-handedness. High rates of unemployment and nonperforming loans suggest Cyprus is not out of the woods yet. But its biggest sacrifices may be in the past. In April, capital controls were lifted. In October, the country made its first long-term debt sale since the bailout and the economy has started to grow. Next year should be its last under the watchful eye of the Troika.

QUOTE/UNQUOTE

“I believe in rationality, making non-dogmatic decisions far from prejudice and obsession. And I insist that in the end, decisions have to be made. Procrastination is a characteristic that has had a significant cost.”

“When I don’t have a dinner engagement at the ministry, I go to bed very early, at 10 p.m. at the latest. But every day, even at the weekend, I wake up at five in the morning or earlier. I write, think and read in peace … At the moment of course, I’d like to have more time with my daughter.”

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