Nicosia, Cyprus. Finance Minister Makis Keravnos said the finance ministry is preparing multiple scenarios and measures to mitigate potential economic fallout from the war in Iran. He said authorities are closely monitoring developments and assessing possible effects on Cyprus.
Finance ministry monitoring developments
Keravnos said the finance ministry is processing scenarios and monitoring developments, following a meeting with Edek president Nikos Anastasiou.
“Depending on these developments and the duration of these crises, we are preparing plans to mitigate any problems that may arise,” he added.
The comments came amid concerns about the potential economic impact of the Iran conflict on businesses and households in Cyprus.
Fiscal Council warns of pressure on economy
The Cyprus Fiscal Council warned that developments related to the war in Iran are likely to exert significant pressure on the Cypriot economy and urged the government to prepare immediately for potential fallout.
“The developments in Iran are quite likely to exert significant pressures on the Cypriot economy,” the council said, adding that while key parameters remain uncertain, immediate preparation is needed to address the consequences.
“With the possibility of the conflict continuing over time, and even evolving into an asymmetric war, the response to developments should take into account the high degree of uncertainty that characterises current data,” it said.
The council also said uncertainty remains exceptionally high due to the risk of a prolonged conflict and its unpredictable trajectory.
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