The Economic Adjustment Programme for Cyprus was formally agreed in May 2013.
The Programme aims to address the financial, fiscal and structural challenges facing the economy in a decisive manner and should allow Cyprus to return to a sustainable growth path.
Staff teams from the International Monetary Fund (IMF) and the European Commission (EC), in liaison with the European Central bank (ECB), visited Nicosia during July 14-24 2015 to review Cyprus’s economic reform programme.
The teams have reached staff-level agreement on policies that could serve as a basis for completion of the review, reflecting the progress and policies under the program. The financial situation of the banks is gradually improving, and there is tentative evidence that the slow pace of debt restructuring is picking up. The fiscal targets in the first half of 2015 were met with substantial margins. In addition, the authorities are making progress on their structural reform agenda.
The latest disbarment by the European Stabilisation Mechanism (ESM) took place on 15/07/2015 and amounted to €100 mn.
Following a request by Cyprus on 25 June 2012, the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF) agreed an Economic Adjustment Programme with the Cypriot authorities on 2 April 2013. The Programme was agreed by the euro-area Member States on 24 April 2013 and by the IMF Board on 15 May 2013. It covers the period 2013-2016. The financial package will cover up to EUR 10 billion; the ESM will provide up to EUR 9 billion, and the International Monetary Fund (IMF) is expected to contribute around EUR 1 billion.
The economic adjustment programme will address short- and medium-term financial, fiscal and structural challenges facing Cyprus. The key programme objectives are:
Financial assistance of EUR 10bn has been granted to the Republic of Cyprus, of which EUR 9bn to be provided by the ESM and EUR 1bn by the IMF.
Overview of ESM loan disbursements to Cyprus
Date of disbursement
Remaining amount of ESM Financial assistance available
Remaining disbursements will be subject to quarterly reviews by the Commission in cooperation with the IMF and in liaison with the European Central Bank (ECB).
By mobilising EU funds and technical expertise, the SGCY supports the Cypriot authorities’ efforts to restore financial, economic and social stability and to implement the Memorandum of Understanding on Specific Economic Policy Conditionality ("the MoU").
More information on the Support Group for Cyprus