The year 2015 will also be difficult for the Cyprus economy, said Finance Minister Harris Georgiades, who, however, expressed optimism that the course of correction will continue.

Speaking on the state radio this morning, Mr. Georgiades noted that “the government estimates that 2015 will be without high growth rates”, stressing that “the full correction takes time”.

He reminded that “the engines of the Cyprus economy had gone out before getting into the adjustment program, but there have been significant improvements in the last two years”.

“The correction course of the Cyprus economy”, he added, “will continue in 2015, despite the fact that it will also be a difficult year. In 2014 the correction exceeded 2% of GDP. This equals to an additional national income for the country and fellow citizens”, he said.

He stressed that a similar correction will be recorded this year under certain conditions which are linked “with our ability and disposition to continue the path of reforms, consolidation of the positive changes, the corrections and modernization”.

“The course of correction”, he said, “may be continued in order to go the distance needed provided that from our side we will avoid moves of uncertainty and instability”.

“In this context the full restoration of the creditworthiness of the state will be completed. This is what will relieve us from the crutches of lenders. And the return to the markets is a perfectly feasible aim. The upgrades by foreign rating agencies, which represents a signal, is the proof”, he added.

“Another important prospect for Cyprus is participating in the ECB's quantitative easing program and in line with what I have mentioned beforehand, this makes a positive prospect for the Cyprus economy and we should take advantage of it”, he concluded.

The insolvency framework

The finance minister expressed optimism regarding the latest developments about the insolvency framework, hoping that the controversial piece of legislation will be completed on 17 April allowing the implementation of the Law on foreclosures which is a prerequisite for international creditors.

Harris Georgiades admitted that the legislation governing the insolvency framework is complicated by its nature and doubted whether it will become simpler through the processes of parliament.

"They are indeed complex and the time required for their consideration is justified", he noted.

He pointed out that the delay in the implementation of the Law on foreclosures as well as decisions of the parliament last December, have cost damage to the credibility of Cyprus.

He noted however that "during the past two years Cyprus has largely won back its credibility”.

The adoption of the insolvency framework will help the continuation of the modernization of legislation for foreclosures, the introduction of regulations related to borrowers and the protection of the main residence.

Additionally, he noted that "there will be an equally significant indirect benefit because by removing this pending issue we will proceed with reforms and benefit in multiple ways".

He suggested, however, that "through changes the substance of the bills should not change. We can co-sign some improvements and we will persuade international creditors as well".