First troika assessment draft for Cyprus before the weekend

A first draft of the troika (EC, ECB, IMF) mission evaluation on the implementation of a Memorandum of Understanding (MoU), the basis of an international rescue programme for Cyprus, is expected to be handed over to the government before the weekend, CNA sources say.

The same sources note that so far the general feeling on the troika review, in Cyprus since July 17, is a positive one.

Cyprus government’s efforts are focused in taking advantage of the time left before the troika mission departs at the end of July in order to close all pending issues as regards the MoU and its implementation with a view of clinching a positive assessment.

On Thursday morning troika technocrats will be convening anew with Ministry of Finance officials at the ministry, in Nicosia, for a follow up meeting on progress achieved so far.

At the same time, CNA sources, have said that the troika has been asked to hand over a first draft of its assessment if possible before the weekend so that the ministry can then come back with its observations.

There are no troika related meetings scheduled to take place at the Central Bank on Thursday.

Cyprus and its international lenders (the European Commission, the European Central Bank and the IMF) agreed late March on a €10 billion bailout programme, which featured a haircut on uninsured deposits in the island`s two largest banks.

Cyprus Popular Bank, the island`s largest lender, will be wound down with its assets and insured deposits absorbed by Bank of Cyprus, which is currently under a consolidation procedure.

The bailout was coupled with strict capital controls which economists say hamper economic activity.