Following their second scheduled review, carried out during late October and early November, Cyprus's international lenders have announced their satisfaction with the progress made in implementing the agreed rehabilitation measures.
According to a joint statement issued by the "troika" of international lenders, comprising the European Commission, the European Central Bank and the IMF,
"Cyprus's programme is on track. All fiscal targets have been met with considerable margins, reflecting the ambitious fiscal consolidation underway, prudent budget execution, and a less severe deterioration of economic activity than originally projected. Structural reforms are also advancing. Furthermore, since the last review, there has been significant progress toward the recapitalisation and restructuring of the financial sector. This has allowed further relaxation of payment restrictions since July, in line with the government's milestone-based roadmap. This reflects the ambitious fiscal consolidation underway, prudent budget execution, and a less severe deterioration of economic activity than originally projected."
The troika's review is expected to be considered by the Eurogroup, the European Stability Mechanism and the IMF in December, paving the way for the disbursement of €100 million euros by the ESM, and approximately €86 million by the IMF.
While the international business sector has been largely unaffected by the banking crisis, it is nevertheless heartening to see the progress that is being made towards economic recovery.
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