IMF says it is in close contact with Cypriot authorities

The IMF remains in close contact with the Cypriot authorities, however the Troika has not yet set a date for the return of its mission to Cyprus, as a legislative package on foreclosures needed for the conclusion of the fifth review of the Cyprus program is still pending before the Supreme Court, an IMF spokesperson said Thursday.

Under a €10 billion bailout signed with international lenders collectively known as the Troika (EC, ECB, IMF), Cyprus had to introduce new legislation on foreclosurew of mortgaged properties. However the bills passed by the House by a majority on September 6, were referred to the Supreme Court by President Anastasiades who refused to sign them into law on the grounds that they were unconstitutional.

The plenary of the Supreme Court of Cyprus is expected to issue on October 31, at noon, its ruling on whether four of the bills passed by the House of Representatives regarding foreclosures are constitutional.

“The IMF team and our partners ended the fifth review of the program at the end of July. Since then we are urging the authorities to further strengthen the legislative package on foreclosures to ensure that the process is effective, which we believe will help Cyprus with the high level of Non Performing Loans, restart flowing of bank credit and return to growth” IMF Spokesman Gerry Rice said.

He then noted that “a legislative package consistent with these goals is needed for the conclusion of that fifth review of the program”.

“We are aware that proposed changes to the foreclosure process are currently with the Supreme Court. So, we remain in close contact with the supreme authorities on this issue” he said, adding however that “I don’t have anything now on the return of the mission”.