Cyprus & World News

ECONOMY: Troika back in Cyprus for post bailout review

20 September, 2018

A Troika delegation will be in Cyprus next week for a round of meetings with key actors in the Cypriot economy to discuss the non-performing loans and growth prospects.

Representatives from the European Commission, the European Central Bank, the European Stability Mechanism and the international Monetary Fund will have contacts with Parliament’s Finance Committee, the island’s two biggest banks Bank of Cyprus and Hellenic, and a number of advisory bodies to the government.

The meeting is one of the regular meetings Troika representatives have on Cyprus with the purpose of assessing the country's economic and financial situation.

Sources close from one of the advisory bodies to the government told the Financial Mirror that these meeting take place regularly and there is no need for concern as the institutions are fully informed about the latest developments and have already given feedback.

The source said that issues on the agenda are more or less predetermined by the European institutions and the IMF, and the Finance Ministry has already sent information on the issues that the delegates want to discuss.

As expected, the issues to be discussed are related to recent economic, budgetary developments and Cyprus’ economic and fiscal perspectives.

Meanwhile, issues related to developments in the country’s banking system are also expected to be addressed, particularly with regards to the implementation of the strategy for reducing non-performing loans and recent legislations approved by Parliament regarding repossessions.

Eurozone member Cyprus has recovered relatively quickly from a 2013 bailout and registered 4 percent economic growth last year.

In March 2013, Cyprus clinched a 10-billion-euro loan from the European Union and International Monetary Fund to bail out its troubled economy and oversized banking system.

It exited Troika's bailout programme in 2016.

Meetings are to take place on Monday.