ECONOMY: Cyprus to achieve investment grade after years in the junk yard

Bailed-out Cyprus is well on its way to regaining investment grade status after six years in the financial wilderness following an economic meltdown.

Government Spokesman Prodromos Prodromou talked up the government’s progress after a six-month review of the second-term Anastasiades administration by cabinet.

Cabinet was briefed by the Finance Minister on developments in the economy. 

Cyprus’ return to investment grade status “will be a very important development,” the Spokesman told reporters.

He noted that for the first time in recent years, the unemployment rate in Cyprus is lower than the EU’s average “and we continue steadily towards full employment, with prudent fiscal management, as well as with robust growth recorded in the economy”.

Burdened by an ailing oversized banking sector and an economic recession, Cyprus saw its ratings decline to junk in 2012, loosing access to financial markets, that forced the government to apply to the EU and the IMF for financial assistance in 2012.

The government completed its €10 bln bailout programme in March 2016 and believes that 2018 will see its ratings return to investment-grade level.