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Cyprus bailout tranche approved

Last evening Eurozone finance ministers approved the release of a €350 million bailout tranche to Cyprus as the country had amended laws on foreclosures and forced sales of mortgaged property as agreed in the MoU.

Cyprus bailout tranche approved

EUROZONE finance ministers on Thursday approved handing out the next tranche of bailout loans for Cyprus after the country met the last two conditions for the payout, a Cypriot official said.

To get the 350-million-euro tranche from the European Stability Mechanism, the euro zone bailout fund, Nicosia had to amend laws on foreclosures and forced sales of mortgaged property in line with a deal with its international lenders.

A document prepared for the ministers’ meeting in Brussels said: “The program partners find that Cyprus has complied with the conditions for a positive conclusion of the fifth review.” It added that the payout would be recommended so long as this situation remained unchanged.

“Today the eurogroup reaffirmed the significant progress made on reforms for the economic recovery of the Cypriot economy,” Cypriot Finance Minister Harris Georgiades said.

“The process of releasing 350 million (in aid) which our economy needs has started,” he said.

The EU and the IMF reached a deal in March 2013 to extend 10 billion euros in aid to Cyprus, staving off bankruptcy from exposure of its banks to indebted Greece, and fiscal slippage.

A new tranche of aid, Cyprus has received about half of its bailout amount, had been delayed amid disagreement from local lawmakers on provisions of a foreclosures law demanded by lenders to make rising non-performing loans of banks more manageable.

Cyprus’ Supreme Court last week declared unconstitutional legislative amendments which essentially weakened the foreclosures process and which lenders had objected to.

Reuters

Readers' comments

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  • Peter Davis says:

    Approved really? So what do they have to do to get it rejected?

  • Deanna says:

    @Mike: Strong sentiment, but I wouldn’t disagree with anything you’ve said.

  • MartynG says:

    The usual weaselly Euro-comments but interesting to note :

    It (the Ministers Group) added that “the payout would be recommended so long as this situation remained unchanged.”

  • Mike says:

    This charade really has to stop. I had no doubt that Cyprus would receive the bailout funds no matter what we did or said. The EU would have found a way to spin any act which demanded blocking the issue and at the 11th hour issue a statement which would permit the funds to be released. This is no more than political flexing of muscles by two self serving administrations both of whom are intent of keeping their respective populations in economic slavery in order to feed their own sense of self importance.

    I see the EU as an ‘association’ (we are fond of them) for incurable and self serving politicians and like all associations collects subscriptions from its members to fund a further level of highly paid but unnecessary and redundant politicians to promote its self serving sense of importance.

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