WASHINGTON — Tension continues to grow between the president of the island country of Cyprus and the island’s bank chief.
Reuters reported that Nicos Anastasiades, the president of Cyprus, threatened to use the courts system to remove Central Bank of Cyprus Governor Panicos Demetriades from his duties.
Anastasiades accused the bank governor of not moving quickly enough to resolve the island’s struggling banking system and has not tried hard enough to get the country back on its feet sooner rather than later.
Demetriades was heavily criticized for imposing a tough bailout package (with help from Russia) on the island country after a run on the banks nearly crippled the island in addition nearly toppled the entire euro zone currency system. In order to receive a substantial bailout package from the EU, Demetriades had to close a major bank on the island and seize savings.
This threatened the independent nature of the central bank, and chief of the EU’s central bank Mario Draghi warned serious repercussions if the Cypriot President Anastasiades were to remove Demetriades from his post.