Cyprus & World News

Troika returns to review Cyprus NPLs, NHS roadmap

05 May, 2014

A team of inspectors from the Troika of international lenders is back in Cyprus, with meetings scheduled on Tuesday that will explore the rate of progress, if any, on issues such as the national health scheme and the rise in non-performing loans within commercial banks.

The delegation, comprising officials from the European Commission, ECB and IMF, will have a meeting with Health Minister Philipos Patsalis to review the road map for implementation of the NHS, as part of the fourth evaluation of the Cypriot economic adjustment programme.
This week will be very important because “we will have in Cyprus our lenders which expect to see the progress we have made for the implementation of the NHS and the reforms but unfortunately we are behind schedule,” Patsalis had said earlier.
During their first week on the island, the mission will examine all the issues on a technocratic level, while during the second week it will begin discussions on a political level on the updated memorandum. These discussions are expected to be concluded by May 16.
Public finances, macroeconomic developments, the banking sector and structural reforms are on the agenda of meetings at the Ministry of Finance, the Central Bank of Cyprus and the Directorate General for European Programmes.
In the financial sector, apart from the non-performing loans, the Troika will assess, inter alia, the results of the evaluation conducted by an external firm of the operational capacity of the units dealing with the settlement of loans, restructuring and recoveries in commercial banks, which was completed in late March.
Based on the memorandum of understanding signed with the Troika, a similar evaluation will be conducted for the Cooperative sector and shall be completed by the end of May.