GDP growth this year is expected to be at 0,5%, according to the updated memorandum and based on the new data for the Cyprus economy in 2015.
Initial projections pointed to a recession of 0,5%.
Around one in the afternoon, the negotiations for the review of the memorandum were completed with a positive outcome in the assessment of the economic adjustment program which clears the way for the 8th tranche from the international creditors amounting to €500 mn.
According to information leaked from the finance ministry, the assessment ended with three prerequisites concerning the bills for the public administration reform, the conversion of Cyta to a company under private law and the bill for the trapped property owners due to insolvent land developers.
The Cypriot authorities committed that the bill to modernize and reform the public sector is approved by the cabinet in late August.
As for the conversion of Cyta to a company under private law to attract investors, this will be put before the cabinet for approval by the end of August.
The bill for the trapped property owners must be approved by the plenary in September.
Also, the updated Memorandum includes a commitment on behalf of the Cypriot authorities, according to which the bill for the sale of loans will be approved by parliament by the end of September, while the bill for the securitization of loans should be passed by the parliament by the end of the year.
Finance minister, Harris Georgiades, in statements after the end of the negotiations with the heads of the troika, noted that the upward revision of the 2015 growth rate is a positive development.
As he said, “until last spring there was an estimate for 0,5% recession, which has now changed with the new data to an estimate of a positive growth rate of 0,5%”.
According to Mr. Georgiades, the impression that the implementation of the program leads to a deeper recession is proved wrong.
On the contrary, it is proved, he said, that through hard work and sacrifices, the stability and the confidence have been restored, creating conditions for recovery.
At the same time he indicated that the condition of the public finances is good and no additional measures are required, stressing that there is no room for even the slightest relaxation.
Mr. Georgiades said that the prudent fiscal policy will continue. “I believe that the combination of fiscal consolidation that we have achieved with the return to positive growth rates and with the gradual correction of the real economy, is perhaps the most important success of the Cyprus program”, he added.
Initial projections pointed to a recession of 0,5%.
Around one in the afternoon, the negotiations for the review of the memorandum were completed with a positive outcome in the assessment of the economic adjustment program which clears the way for the 8th tranche from the international creditors amounting to €500 mn.
According to information leaked from the finance ministry, the assessment ended with three prerequisites concerning the bills for the public administration reform, the conversion of Cyta to a company under private law and the bill for the trapped property owners due to insolvent land developers.
The Cypriot authorities committed that the bill to modernize and reform the public sector is approved by the cabinet in late August.
As for the conversion of Cyta to a company under private law to attract investors, this will be put before the cabinet for approval by the end of August.
The bill for the trapped property owners must be approved by the plenary in September.
Also, the updated Memorandum includes a commitment on behalf of the Cypriot authorities, according to which the bill for the sale of loans will be approved by parliament by the end of September, while the bill for the securitization of loans should be passed by the parliament by the end of the year.
Finance minister, Harris Georgiades, in statements after the end of the negotiations with the heads of the troika, noted that the upward revision of the 2015 growth rate is a positive development.
As he said, “until last spring there was an estimate for 0,5% recession, which has now changed with the new data to an estimate of a positive growth rate of 0,5%”.
According to Mr. Georgiades, the impression that the implementation of the program leads to a deeper recession is proved wrong.
On the contrary, it is proved, he said, that through hard work and sacrifices, the stability and the confidence have been restored, creating conditions for recovery.
At the same time he indicated that the condition of the public finances is good and no additional measures are required, stressing that there is no room for even the slightest relaxation.
Mr. Georgiades said that the prudent fiscal policy will continue. “I believe that the combination of fiscal consolidation that we have achieved with the return to positive growth rates and with the gradual correction of the real economy, is perhaps the most important success of the Cyprus program”, he added.
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