Technical progress was made during the Troika’s visit to Cyprus in July, a Spokesman of the European Commission has told CNA.
Simon O`Connor, Spokesman for the EU Commissioner for Financial and Economic Affairs, Olli Rehn, told CNA that there is no date set yet for the next Troika (Commission, European Central Bank, International Monetary Fund) mission to Cyprus.
He added that a series of meetings were held at political and technical level in July, in the context of the Cypriot request for an economic adjustment programme.
The talks, he said, focused on developing an appropriate strategy for the financial sector, fiscal policy and structural reforms, taking into account the current difficult economic climate and further downside risks to the economic and financial situation.
"Concrete policy options were presented and discussed. Technical progress was made", O Connor said.
He went on to note that the Troika has since continued its consultations with the Cypriot authorities with a view to achieving the necessary convergence ahead of a future mission to Cyprus, which would take place under the terms set out in the statement by the Eurogroup of 27 June 2012.
The Government of the Republic of Cyprus informed on the 25th of June 2012 the competent 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 to 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.
Concluding, the Eurogroup noted it was confident that the implementation of this programme would address the financial, fiscal and structural challenges of the economy in a decisive manner and should allow Cyprus to return to a sustainable growth path".
