NICOSIA - The government is expected to announce Saturday the new Central Bank Governor, after the President’s decision to replace incumbent Governor Athanasios Orphanides.

According to reliable sources, President Demetris Christofias, who met Friday with Orphanides, briefed him on his decision to replace him.

Panicos Demetriades, a professor of financial economics at the University of Leicester who is expected to be appointed as the new Governor, was also received Friday by President Christofias at the Presidential Palace.

After his meeting with the Cypriot President, Orphanides declined to say whether he was informed about the President’s decision, saying that he had a very good meeting with the President after a long time.

''As you know, it's been a long time since we met. We talked about various issues, I briefed him on the economic situation, the challenges we face now and we also spoke about the expiry of my term on May 2, ''he said.

He added that the last time he officially met President was during the first semester of last year.

Asked to explain why this was so, Orphanides said that he has always been available and he will remain at the disposal of the President of the Republic to give any advice which can be helpful in managing the crisis.

''I’ m the Governor for nearly five years now. My primary goal was to help the country. Beyond that each of us makes his own decisions and acts as he believes more appropriate,” he said.

Replying to another question, he rebuffed accusations against him for insufficient control of banks which has resulted in huge losses due to the haircut of Greek bonds.

He added that the issue should be examined closely.

“I don’t think I have made any mistakes regarding banking supervision, taking into account the context in which the supervision must be exercised. There are many kinds of decisions that have contributed to the problem we have right now, including political decisions,'' he pointed out.

The Governor noted that decisions on the haircut of Greek debt, which now costs so much to all shareholders of the banks in Cyprus and the EU, was a decision taken at the political level by Heads of States of the Union.

''It was not a decision taken by the supervisors or by central banks,'' he explained.