According to Reuters, the leading international news agency, a
draft report prepared following the visit to Cyprus by inspectors
from the European Commission, the European Central Bank and the
International Monetary Fund - together known as the troika - draws
positive a conclusion on Cyprus's progress in strengthening
public finances. According to the draft report, Reuters said,
"Staff concluded that Cyprus's economic adjustment program
is on track."
Assuming that EU finance ministers approve the draft report, this
means the next €1.5 billion tranche of aid will be made
available as scheduled. The sum will not be in cash but in the form
of bonds that will be used to recapitalize the island's
financial sector excluding the Bank of Cyprus, which has a separate
restructuring plan, and Cyprus Popular Bank, which has been closed
down. A further €86 million will be released by the IMF.
According to Reuters, the report says that, "The authorities
have taken decisive steps to stabilize the financial sector and
have been gradually relaxing deposit restrictions and capital
controls," and that "The fiscal targets have been met as
a result of significant fiscal consolidation measures underway and
prudent budget execution."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
