CYPRIOT authorities believe that the next bailout tranche of the rescue plan will be disbursed soon while Troika has already scheduled the next visit to Cyprus, although the foreclosures law has not yet been voted by the Parliament.
The Ministry of Finance expects that the fifth tranche of the bailout will be disbursed over the next two weeks and the sixth assessment will commence on January 27.
A senior Finance Ministry source told StockWatch that the Cypriot authorities were informed officially that the international creditors will be in Cyprus by late January, irrespective of the growing reactions of the opposition in relation to the controversial legislation on foreclosures.
The Ministry expects that the new reactions of the opposition in relation to the disputed bills on foreclosures and insolvency will not reverse the smooth implementation of the program.
The program remains stagnant since the last Troika visit in July, due to problems in promoting the bill to hasten foreclosures, despite the substantial improvement in public fiscal indicators.
Cyprus is expected to show a deficit of 2.5% and a primary surplus this year – two years prior to the initial estimates.
According to the Finance Ministry, the tranche is now expected to be disbursed on December 15.
On remarks that the opposition is promoting draft laws to suspend the implementation of the foreclosures law, the senior Finance Ministry source estimated that the decision for the disbursement of the tranche is final.
He noted that the full implementation of the law will be feasible after the preparation of relevant regulations.
These regulations have not yet been approved and, according to the Attorney General’s office, the law cannot be applied without them.
The opposition is preparing proposals to suspend the implementation of the Law on the foreclosure of primary residence. It also disagrees with various provisions of the insolvency framework.
The insolvency framework, which consists of five laws, is not expected to be approved before the end of the year as stipulated in the rescue plan.