First quarterly review of Cyprus’s economic program

The European Commission (EC), European Central Bank (ECB), and the International Monetary Fund (IMF) issued a statement today following the first quarterly review of Cyprus’s economic program. According to the statement:
 

  • Cyprus program is on track
  • All the fiscal targets have been met
  • Decisive steps have been taken to stabilize the financial sector and deposit restrictions and
    capital controls have been gradually relaxed
  • Confidence indicators have improved since April
  • Growth is expected to recover modestly starting in 2015
  • Financial sector policies have been geared toward restoring confidence in the banking
    system, including the full recapitalisation of Bank of Cyprus and the set up of a clear
    agenda to restructure and recapitalize other financial institutions without involving
    depositors (this refers mainly to the Cooperative Credit institutions)
  • The primary fiscal deficit in the first half of the year was better than the program target for
    the same period
  • Major structural reforms are being designed to modernize fiscal institutions


The results of the first review, carried out by Troika’s delegation, are positive and more importantly no additional measures have been proposed. This is an indication of the determination and commitment of the Cyprus authorities for the successful implementation of the economic program agreed with Troika, targeted to restore the financial sector stability and generate long term sustainable growth.

The actual statement issued by the EC, ECB and IMF can be found at the link below:
http://www.ecb.europa.eu/press/pr/date/2013/html/pr130731.en.html 

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