The borrowing of the states during this period is a necessary evil, the CEO of PwC Investment Services (Cyprus), Homer Pissaridis, told KYPE. While emphasising that “it is important, at this time, not to borrow uncontrollably”, but to borrow the amounts that are needed and which will be channelled into lucrative sectors of the economy, “because things can continue to be difficult”.
Cyprus should be borrowed “sparingly, carefully and above all with a willingness to understand in what areas some money should enter,” said Mr Pissaridis, who was asked to comment on the need for states to resort to borrowing to deal with the effects of the coronation pandemic on the economies.
He added that the areas in which money will be directed “must be lucrative sectors in order to be able to bring back the income we want to repay the debt”.
The CEO of PwC Investment Services also said that “debt has continued to rise in recent years and after the previous crisis” and that, he said, “it is a cause for concern as well as the fact that most economies are at the moment.” forced to borrow to rob. “
“This is a necessary evil” as if a person with a heart attack, as he characteristically said, “what matters is that his heart works again and he can survive and if there is something else he needs to fix he can see when at best he will be able to know that his heart is working fine. “
“Everything in the economy and everything has to do with priorities and right now the priority is clear,” he said.
Asked whether indebted Italy would create a debt crisis in the Eurozone, Mr Pissaridis said “Italy is a very large economy and can potentially cause a big problem across Europe”.
“There is concern that judging by the way Europe has handled Italy in the past and in relation to other smaller countries, it is not easy for Europe to let Italy have a big problem,” he added.
This does not mean, he added, that Italy should not be too careful in handling the situation.
Mr. Pissaridis told KYPE that “the reality is that you do not know when a crisis will hit you, so it is important to be prepared before it is too late”, emphasizing that “preparation can only be done in advance”.
“When someone is not ready and the crisis hits them, unfortunately there are no easy options,” he concluded.