CYPRUS: Troika awaits formal response before next visit

In statements to CNA from Brussels, European Commission Spokesman, Olivier Bailly, said that “we are waiting for a formal response and proposals from the Cypriot authorities on various policy options of a draft MoU”.

“So far”, he added, “the date of the next Troika mission to Cyprus has not yet been set”.

The government of the Republic of Cyprus informed on the 25th of June 2012 the appropriate European Authorities of its decision to submit to euro area Member States a request of financial assistance from the EFSF/ESM.

The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spill over effects through its financial sector, due to its large exposure in the Greek economy.

On the 27th of June, the Eurogroup in a written statement noted that based on a needs assessment, the euro area financial support would be provided in the framework of a comprehensive adjustment programme, building on the measures already taken by the Cypriot authorities and the recommendations put forward by the European Commission on 30 May under the European Semester.

It noted that the programme will be negotiated by the Commission, in liaison with the ECB, with the Cypriot authorities and the IMF.

“After an agreement has been reached with the Cypriot authorities, the programme would be endorsed by the Eurogroup, in line with national procedures, on the basis of an assessment by the Commission, in liaison with the ECB, and the IMF, of the financing needs and the conditionality that shall accompany the assistance”, the Eurogroup said.