NICOSIA  -- Credit rating agencies should be more transparent and be accountable to someone, Director of Cambridge Centre for Economic & Public Policy Philip Arestis has said.

Arestis, who was addressing an event organised by Cyprus –UK Business Association and Cyprus Commercial Representatives Association in Nicosia on Monday on recession and economic policy implications, said that “there is sufficient consensus that credit rating agencies have contributed to the current financial crisis”.

Noting that the accuracy of forecasts by credit rating agencies is clearly important, he spoke of the need for some accountability, noting that a conflict of interest exists in as far as at least larger credit rating agencies rely for most of their revenue on the issuers they rate.

Referring to the role of Central Banks, he said they should not follow the same policy of just regulating inflation as before.

Instead, he added, some type of macro-prudential type policy should be in place, explaining that the whole of the financial sector needs to be regulated. Banks, Arestis said, should be socially and economically useful to the economy as a whole, rather than provide short term profits for their shareholders.

Addressing the event Vice President of the Cyprus – UK Business Association Androulla Pitta said that it was established in March 2008 “aiming to provide effective and practical assistance in engaging, promoting and enhancing the economic and trade relations between Cyprus and Great Britain”.

On his part President of the Cyprus Commercial Representatives Association Demetris Kalavanas noted that that his association “has developed a long-lasting relationship over the years with its members, assisting them in establishing, growing and consolidating business activities on a daily basis”. The Association, he added, is equally concerned with the continuous education of its members.

Cyprus Chamber of Commerce and Industry (CCCI) President Phidias Pilides informed all present that in fostering efforts to strengthen bilateral economic and business cooperation between Cyprus and other countries, the Chamber has founded 28 bilateral business associations that operate under its auspices.

“I would like to reassure and express our readiness to try to stimulate growth in the Cyprus economy, by encouraging serious cooperation, investments and research and development, creating new jobs, hope and opportunities”, he concluded.