The Troika is making progress in the Cyprus program

The progress and the policy of commitments in the framework of the program that has taken place in Cyprus, points out a joint statement of the Troika, issued on the occasion of the completion of the visit to the island of the IMF, EU and European Central Bank, emphasizing that the groups have agreed on policies that could serve as a basis for completing the evaluation.

Its completion is subject to the approval procedures of the European Union and the IMF and is expected to take place in January 2016.

The announcement states that "economic activity has continued the positive trend since the beginning of 2015, while the banking system continues to heal. Although there is evidence that the slow pace of debt restructuring is accelerating, non-performing loans (NPLs) remain high and lending rates are sluggish. The budget targets for the third quarter of 2015 were met with significant margins. In addition, the authorities are making progress on their structural reform agenda. "

With regard to future moves, the Troika considers the increase in the pace of reforms under the program crucial to securing the progress that has been made.

It is worth noting, it is stated, “that reducing the excessively high level of non-performing loans remains the first priority. It is a necessary condition for sustainable stabilization of the banking system and repetition of lending. In this context, the scales take into account the recent adoption of the law to facilitate the sale of loans, which is a key commitment of the program. "A preliminary assessment shows that the law contains a number of favorable elements."

The announcement emphasizes that the final assessment "will be based on the consolidated official version and the application of the regulations".

He added that moving forward, the authorities must take all necessary measures to effectively enforce this legislation, as well as insolvency proceedings and the divestiture framework, in order to decisively reduce non-performing loans.

He noted the need to "continue sound fiscal action to ensure that the public debt ratio returns to an acceptable level, while public spending is focused on growth-enhancing activities".

Finally, he emphasized that "moving forward decisively with structural reforms - including, above all, the privatization process, the separation of the electricity sector and public administration reforms - is crucial to stabilizing (cementing) improvements in public finances. and support sustainable economic growth and job creation. "

Source: KYPE