NICOSIA: Professor Panicos Demetriades has been named new governor of the Central Bank of Cyprus, government spokesman Stefanos Stefanou said on Saturday. He said that  President Christofias has appointed Demetriades to  the post for a five year term that begins on May 3
"We would like to wish Mr Panicos Demetriades every success in the difficult task he is undertaking," the spokesman said.
Demetriades takes over at a time when Cypriot banks are struggling to absorb losses incurred by their exposure to Greek government bonds and satisfy recapitalisaton requirements. Only on Friday Fitch ratings agency said the Greek crisis will continue to take a toll on the island's banks in 2012.
The appointment was widely expected, despite calls on the president to reappoint Orphanides.
Demetriades, an economics professor at the University of Leicester replaces Athanasios Orphanides, whose five year term has not been renewed.  The president yesterday held separate meetings with the two men as the Presidential Palace. Stefanolu said the President and the government wanted to thank Orphanides for his services and wish him every success in the future.
He would not elaborate on the president's choice of governor, saying only that he had exercised his constitutional right.
Demetriades studied economics at the University of Essex and then the University of Cambridge where he was awarded a doctorate. He worked at the Economic Research Department of the Central Bank of Cyprus from 1985 to 1990 dealing with issues of monteary policy, before becoming a university professor. Born in Limassol, he is married with three children.