16.11.2015 - Staff teams from the International Monetary Fund (IMF) and the European Commission (EC), in liaison with the European Central Bank (ECB), visited Nicosia during November 3-13 to review Cyprus’s economic reform programme. Cyprus’s programme, which is supported by financial assistance from the European Stability Mechanism (ESM) and the IMF, aims to promote economic recovery and job creation by restoring financial sector stability, strengthening public finances, and implementing reforms to increase long-run growth.
The teams have reached staff-level agreement on policies that could serve as a basis for completion of the review, reflecting the progress and policy commitments under the program. Economic activity has continued on a positive trend since early 2015, while the banking system continues to heal. Although there is evidence that the slow pace of debt restructuring is picking up, non-performing loans (NPLs) remain high and the pace of lending is subdued. The fiscal targets for the third quarter of 2015 were met with substantial margins. In addition, the authorities are making progress on their structural reform agenda.
Looking ahead, increasing the pace of reform under the program will be essential to entrench the progress achieved:
Conclusion of the reviews is subject to the approval processes of both the European Union and the IMF, which is expected to be initiated in January 2016.
Find out more: Economic Adjustment Programme for Cyprus.