Cyprus & World News

Troika continues adjustment programme review in Cyprus

31 January, 2014

Technocrats of the Troika (European Commission, ECB, IMF) continue contacts in Cyprus on Friday, as part of the third review mission of the island’s adjustment program.

Meetings in the Directorate General for the European Programmers, Coordination and Development will begin with a review over the progress made on the implementation of a Budgetary Framework in the presence Finance Ministry officials.
In a separate meeting, the Troika will discuss with representatives from the Ministries of Finance, Interior, Public Order and the Supreme Court the situation in the real estate sector, giving special emphasis on guaranteed time frames, the progress of the deeds issuance, the clearing of impediments on title deeds.
Furthermore, Troika technocrats will discuss in separate meetings over macroeconomic projections with Bank of Cyprus analysts and the macroeconomic studies team of the Central Bank of Cyprus.

Troika delegates also will discuss progress in the reforms in the Tourism sector and particularly the amendment of the legislation on mix-use development, marine and coastal tourism, cruise industry, as well as the air services.
At noon, representatives of the Ministries, of Labour, Finance and the Cyprus Statistical Service, will discuss the progress over the implementation of the Guaranteed Minimum Income, scheduled to be launched in June, the final design of the welfare system and the transfer of competences to the Ministry of Labour.

They will also review the VAT services and Inland Revenue Department on revenue performance by sector of the economy.
Contacts will also cover the disbursement of loans leading to government guarantees, as well as the law to regulate the creation and the functioning of State-owned enterprises and the legal and institutional framework for the privatization of the semi-governmental organizations.

Troika will continue on follow-up meetings with regard to the Anti-money laundering framework. Technocrats will meet with the Cyprus Bar Association to review the regulation of the law firms with regard to AML compliance, while they will also discuss the same issue with the Cyprus Auditors Association.
Cypriot authorities and the Troika (EC, ECB and the IMF) agreed last March on a €10 billion bailout. The program featured a conversion of uninsured deposits to capital in a bid to recapitalize the island’s largest lender, Bank of Cyprus.