Despite the success of the country's bailout, non-performing loans (NPLs) remain a thorn in the side of the Cypriot banking system. The latest data from the country's central bank released last month showed that the NPL ratio dropped to 46.1 percent in November last year, the lowest since January 2015, and down from 48 percent in October. In all, the total number of bad loans fell to around 27.4 billion euros.
Georgiades said the Cypriot banking sector was "well-capitalized and well-provisioned" and would be "perfectly able" to raise any capital they needed in the future.
"Even if at some period ahead of us, not imminently obviously, but if at some period ahead of us they would need capital they are perfectly able to raise capital," he told CNBC.
Nonetheless the level of bad loans on banks' balance sheets remains a "challenge," Georgiades added.
"They are high, they are a leftover of the boom and bust of the previous decade but here too I am confident that we will be seeing progress. The de-escalation will not show immediately given the handling of NPLs where you have to be keep them on the red column (of accounts) for a year after they have been restructured but viable restructurings are happening and the fact that the economy is growing again helps."
"So even on this front I am confident, without being complacent at all, that we shall be able to bring them down."
Follow CNBC International on Twitter and Facebook.