Business

Cyprus Economic Policy Council assesses Troikas proposals

by fm

12th March 2013

445 views

1 min read

Cyprus’ National Economic Policy Council had a meeting on Monday during which it assessed proposals put forward by the Troika with a view to find ways to put these proposals into practice with the lowest possible cost for the economy.

According to CNA sources, one of the issues on which the National Economic Policy Council is holding intensive consultations is that of the recapitalization of the Cypriot banks and how to secure that the debt will be sustainable.

Excluded from international capital markets, Cyprus requested financial assistance from the EU bailout mechanism after its two largest banks sought state aid following massive losses of their Greek bond holdings estimated at €4.5 billion, as a result of the Greek sovereign debt haircut.

The Cypriot authorities and the Troika have concluded a draft memorandum containing the conditions of the financial assistance programme, estimated at €17.5 billion.