ACCORDING to sources at the Ministry of Finance, a delegation from the International Monetary Fund (IMF) will visit Cyprus next week for its first post-programme surveillance following the island’s successful exit from the economic adjustment programme last year.
Speaking to the Cyprus News Agency (CNA) Andreas Adriano, Senior Press Office of the Fund, said “This is a closer following of a country after the programme has expired, and while the country still has a substantial credit outstanding with the Fund.”
According to IMF, the enhanced monitoring is intended to ensure the continued viability of a country’s economic framework and provide early warning of policies that could jeopardize the country’s capacity to repay the IMF.
Should it become necessary, IMF staff will advise on policy actions to correct macroeconomic imbalances.
During their weeklong visit the IMF delegation will hold talks with officials on issues concerning the Cyprus economy, including the impact of recent government decisions such as the abolition of Immovable Property Tax. It’s expected they will also meet with Finance Minister Harris Georgiades.
The IMF team is expected to issue a report following the completion of their visit.
A post-programme surveillance mission by the European Commission (EC) and the European Central Bank (ECB) last year urged Cyprus to accelerate the reform programme in a number of key areas including setting up a sustainable and efficient title deeds transfer system (which was described as ‘dysfunctional’.)