FOLLOWING a meeting of the Eurogroup earlier today in Milan its president, Jeroen Dijsselbloem, made the following remarks at a press conference concerning the release of the next bailout tranche to Cyprus.
“The Troika debriefed us on the main findings of the fifth review.
“We welcomed and complimented the considerable progress made by the Cypriot authorities.
“We, however, understand that due to the latest amendments introduced by the parliament, there is one important pending issue in the current review and this relates to the legal framework for private debt restructuring, which is essential part of the next steps to be taken.
“We call on all domestic stakeholders to assume their responsibility and ensure that adequate foreclosure and insolvency legislation is in place as soon as possible, in line with the MoU.
“Once the Troika institutions confirm that the required prior actions have been successfully completed, we can proceed with the disbursement of the next tranche.”
In a statement earlier this week spokesman Simon O’Connor of the European Commission said that parts of the legislation passed by the Cyprus parliament last Saturday “are not compatible with the requirements of the MoU”; a view that was echoed by deputy International Monetary Fund (IMF) spokesman William Murray.