18/02/2014 10:59
Eurogroup President Jeroen Dijsselbloem and Vice-President of the European Commission Olli Rehn welcomed Monday the Troika’s conclusion that Cyprus’ adjustment programme remains on track.
The Troika of international lenders debriefed the Eurozone Ministers on Monday on the main findings of the third review mission, which was concluded last week. Staff teams from the European Commission, the European Central Bank and the International Monetary Fund visited Nicosia during January 29-February 11, 2014 for the third review of Cyprus` economic programme, which is supported by financial assistance from the European Stability Mechanism and the IMF.
“We of course welcomed the conclusion of the Troika that the programme remains on track” said, President of the Eurogroup Jeroen Dijsselbloem, at the press conference following the meeting.
“The macroeconomic and fiscal data for 2013 turned out to be better than expected and that is of course good news. In addition it is good to see that the financial sector is stabilising in Cyprus, allowing for the second phase of the gradual relaxation of restrictions to start shortly” he noted.
Vice-President of the European Commission and member of the Commission responsible for Economic and Monetary Affairs and the Euro, Olli Rehn, said that in Cyprus, “the economy is proving more resilient than expected when the programme was launched around 10 months ago”.
“The programme is on track and I trust the authorities will continue with their steadfast efforts to ensure that it remains so” he said, adding that “the Commission continues to support Cyprus and the Cypriot people through what remains a very difficult period of economic adjustment”.
Klaus Regling Managing Director of ESM said that by 2016 Cyprus will receive another €4.4 billion. In 2014 the country is projected to receive €2.1 billion, of which €150 million will be disbursed by the ESM “very soon”.
Cyprus has been in recession since Q2 2011. Faced with the collapse of its banking sector, Cyprus and the Troika agreed last March on a €10 billion bailout that featured an unprecedented haircut on deposits over €100,000, coupled with strict capital controls that hampered economic activity. So far Cyprus has had three positive programme reviews and restrictions on transactions have been gradually eased.
The Troika of international lenders debriefed the Eurozone Ministers on Monday on the main findings of the third review mission, which was concluded last week. Staff teams from the European Commission, the European Central Bank and the International Monetary Fund visited Nicosia during January 29-February 11, 2014 for the third review of Cyprus` economic programme, which is supported by financial assistance from the European Stability Mechanism and the IMF.
“We of course welcomed the conclusion of the Troika that the programme remains on track” said, President of the Eurogroup Jeroen Dijsselbloem, at the press conference following the meeting.
“The macroeconomic and fiscal data for 2013 turned out to be better than expected and that is of course good news. In addition it is good to see that the financial sector is stabilising in Cyprus, allowing for the second phase of the gradual relaxation of restrictions to start shortly” he noted.
Vice-President of the European Commission and member of the Commission responsible for Economic and Monetary Affairs and the Euro, Olli Rehn, said that in Cyprus, “the economy is proving more resilient than expected when the programme was launched around 10 months ago”.
“The programme is on track and I trust the authorities will continue with their steadfast efforts to ensure that it remains so” he said, adding that “the Commission continues to support Cyprus and the Cypriot people through what remains a very difficult period of economic adjustment”.
Klaus Regling Managing Director of ESM said that by 2016 Cyprus will receive another €4.4 billion. In 2014 the country is projected to receive €2.1 billion, of which €150 million will be disbursed by the ESM “very soon”.
Cyprus has been in recession since Q2 2011. Faced with the collapse of its banking sector, Cyprus and the Troika agreed last March on a €10 billion bailout that featured an unprecedented haircut on deposits over €100,000, coupled with strict capital controls that hampered economic activity. So far Cyprus has had three positive programme reviews and restrictions on transactions have been gradually eased.
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