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Troika approves bailout programme

The latest review of Cyprus’ bailout programme has been successfully concluded, the EC, ECB and the IMF said in a press release yesterday, paving the way for Cyprus to take part in the ECB’s quantitative easing programme.

Troika approves bailout programmeFOLLOWING the recent visit to Nicosia by teams from the International Monetary Fund (IMF) and the European Commission (EC), in liaison with the European Central Bank (ECB), to review Cyprus’s economic reform programme, staff-level agreement has been reached on policies that could serve as a basis for completion of the review.

Cyprus’ economic reform programme, which is supported by financial assistance from the European Stability Mechanism (ESM) and the IMF, aims to foster economic recovery and job creation by restoring financial sector stability, strengthening public finances, and implementing reforms to increase long-run growth.

A key policy reform of the programme has been the adoption of modernised insolvency and foreclosure frameworks, which are needed to reduce the high level of non-performing loans, an essential step to restoring growth and job creation in Cyprus. The main elements of these frameworks are now in place, which has allowed for the finalisation of the staff-level agreement.

The staff teams look forward to the effective implementation of these frameworks, and will help the authorities in adjusting and strengthening them as needed, based on experience over the coming months and international best practices.

Further actions will be important to support the reduction of NPLs, including legislation to facilitate the sale of bank loans.

The authorities should maintain the structural reform momentum. The reform of the public sector administration is key in this respect. Timely implementation of the privatisation plan is necessary to increase economic efficiency, attract investment, and reduce public debt.

Conclusion of this review is subject to the approval process of both the EU and the IMF, which will be initiated shortly.

20 May 2015 – Statement from the European Commission, ECB and IMF on Cyprus

Readers' comments

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  • Mike says:

    We do have a choice, go bankrupt or play by the rules. If we want the benefits of the ‘club’ then we must accept the articles of membership, self discipline, fiscal responsibility and associated codes of conduct. Cyprus is and hopefully always will be a sovereign nation but lets get rid of our crooks, robbers, Liars and cheats (MPs, developers, Bankers, Lawyers) eating away at our people first then we can return to who we truly are and show we are fundamentally honest, ethical and moral.

    Right now a small minority are dragging the rest of us through the gutter and I for one have had enough of them.

  • chris-larnaka says:

    How sweet of them to approve of us destroying our own once sovereign nation, rape and pillage all over again, only this time, our amazing democratically elected government is doing it and saying thank you, I once knew a girl like that, she also said thank you, to everyone.

    On the up side, our so called family of the European union, will soon fold, starting with Greece, then Germany bonds, bands. Not long know.

  • @Pippa on 2015/05/21 at 3:41 pm – It does – but the review completed recently was suspended last year pending the implementation of the foreclosure legislation.

    It’s the next tranche that is conditional on the Cyprus government approving the draft bills concerning the packaging and selling of loans to third parties and resolving the problem of ‘hidden mortgages’.

  • Pippa says:

    What about hidden developer mortgages and the title deeds fiasco, I thought this also needed to be addressed?

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