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Eurogroup approves next tranche of financial assistance to Cyprus

10 December, 2013

The Ministers of Finance of the Eurozone endorsed, in principle, the disbursement of the next tranche of financial assistance to Cyprus, worth €100 million. The formal decision will be taken on December 18 by the European Stability Mechanism. On December 20 the IMF Executive Board is scheduled to decide on the disbursement of €86 million.

In a press release, the Eurogroup "welcomes the conclusion of the Troika`s second review mission that the adjustment programme is on track."

"Macroeconomic conditions are developing in line with programme projections, albeit uncertainty remains high. Fiscal consolidation is advancing in line with the agreed consolidation process. Structural reforms are progressing, although in some cases further efforts are required. Progress continues to be made as regards the recapitalisation and restructuring of the financial sector, including a further gradual relaxation of administrative measures," it says.

Furthermore, the Eurogroup notes that "we commend the Cypriot authorities for the progress achieved in this review and underline that a full and timely policy implementation remains essential to address the many challenges that the Cypriot economy is facing," adding that, "in particular, we welcome the firm commitment of the Cypriot authorities to strengthen the privatisation plans as agreed with the Troika institutions."

"Against this background, the Eurogroup endorsed, in principle, the disbursement of the next tranche of financial assistance to Cyprus. After completion of the national procedures and formal approval by the ESM governing bodies, the ESM is scheduled to disburse €100 million by the end of this year. The IMF Executive Board is scheduled to decide on the disbursement of €86 million on 20 December," it concludes.