CYPRUS: The Troika is back

 Five years after Cyprus was on the brink of bankruptcy and a 10 bln euro bailout deal was struck, a delegation from the Troika of international lenders is back for the fourth post-programme monitoring mission.

Technocrats from the International Monetary Fund, the European Commission and the European Central Bank had meetings at the Finance Ministry and the Central Bank of Cyprus and will continue until Friday.

Cyprus exited the ‘adjustment programme’ in March 2016, but will continue to be monitored by the Troika until 75% of its loan granted by the European Stability Mechanism of EUR 7.24 bln is paid off.

The mission’s monitoring will focus on macroeconomic and fiscal developments while it will also look into matters relating to payroll, labour, health and energy, as well as the insolvency framework and the foreclosures legislation.

Looking ahead, the Troika inspectors are expected to review the national reform programme, the viability of the tourist sector, real estate, investment, as well as delays in the justice system related to the issuance of title deeds and taxation.

Non performing loans and the restructuring of loans are the focus of meetings at the Central Bank, with the outcome expected to impact the future prospects of any confidence and upgrade by the rating agencies. The next monitoring mission is expected in September.