CYPRUS: Government says "We have proved Moody's wrong"

The Government reiterated on Thursday it would continue its efforts for full economic recovery.

After Moody`s announcement made on Wednesday on the Cypriot economy, saying that it considers it “unlikely that there will be any meaningful economic recovery before 2016”, Government Spokesman Nicos Christodoulides said in a written statement that Moody`s “had forecast a recession of 12% for 2013, but eventually reached 5,4%”.

He added that “the Government in collaboration with the parliamentary parties and social partners, and with the support of the people of Cyprus, will continue its efforts for full economic recovery”.

“The Government always takes into account the announcements made by credit rating agencies” Christodoulides said.

Moody`s said that while the 2013 economic contraction was more benign than expected, the recession could be more protracted in the context of high unemployment, reduction in wages, erosion of savings, and the restructuring of the banking sector.