Cyprus should protect the adequacy of banks’ capital, and also improve the culture of payments.
Cyprus should protect the adequacy of banks’ capital, and also improve the culture of payments.

Cyprus Told to Reduce Bad Loans, Push Reforms

Cyprus Told to Reduce Bad Loans, Push Reforms

The International Monetary Fund on Thursday praised Cyprus for making progress since it exited a bailout regime but called on it to reduce bad loans and to press ahead with reforms.
In an assessment issued 15 months since the exit, the IMF board said the island’s banking system was recovering while employment and economic output were growing, AFP reported.
It added, however, that “these achievements have not yet resulted in significant reductions in the high levels of private-sector debt, nonperforming loans.”
Eurozone member Cyprus plunged into a financial crisis in 2013, leaving a number of its top banks insolvent and forcing it to negotiate painful bailout with international creditors. It has since recovered, after the government imposed harsh austerity measures in exchange for a loan of €10 billion (then $13 billion) from the IMF and European Union.
In its statement on Thursday, the IMF board also urged the government to push on with its privatization program which has stalled in recent months. Initial plans to sell off the state-run telecommunications company and the electricity authority have been put on the back burner.
“Directors called for further efforts to curb public debt to create fiscal headroom and insulate the downward path of public debt from potential shocks,” said the IMF. “This could be achieved by saving over performance and windfall revenues and restarting stalled privatizations,” it added.
The IMF also recommended measures to reduce non-performing loans, improve credit allocation, protect the adequacy of banks’ capital, and also improve the culture of payments. The lender also called for the streamlining of court procedures for the settlement of claims and steps to ensure regulations encourage timely recognition of losses.
Cyprus Finance Minister Harris Georgiades welcomed the IMF’s assessment. “The IMF report is particularly positive and notes the remarkable progress that has been made in recent years, contributing to further strengthening investment confidence in our country and improving its creditworthiness,” he said. “The IMF’s suggestions are correct and should be noted.”
The Cypriot economy grew by 2.8% in 2016 and a similar growth rate is expected for this year, buoyed by an anticipated increase in tourism revenue.
The economy of bailed-out Cyprus expanded by a healthy 3.3% in the first quarter on a year-on-year basis, a growth beyond expectations, the finance ministry said recently.
The European Statistical Service, Eurostat, and the Cypriot Statistical Service, Cystat, also said in separate statements that the Cypriot economy grew 0.6% in Q1 relative to the Oct-Dec period.


Short URL : https://goo.gl/dEjS8R
  1. https://goo.gl/8cqm7p
  • https://goo.gl/lKw05j
  • https://goo.gl/mQKte6
  • https://goo.gl/IuzphH
  • https://goo.gl/izZOFY

You can also read ...

Innovation, Technology Should Boost Hong Kong Economy
Innovation and technology will become profitable in Hong Kong...
Annual expansion in the second quarter fell to 4.5%.
Malaysia cut its full-year growth forecast and reported much...
Government data shows the number of jobs created in July fell to the lowest levels in over eight years.
South Korea’s ranking officials revealed a disparity in their...
Canada Inflation Surges
Canada’s inflation rate surged to 3% in July, fueled by rising...
As technological progress makes people richer in terms of many basic goods and services, it may be inevitable  that more human activity is devoted to zero-sum competition for available income and assets.
Across the global economy, the potential for automation seems...
Trade War Won’t Dent China GDP
Analysts are trying urgently to evaluate the potential impact...
Italy to Launch New Infrastructure Plan
The government will launch a plan aimed at making Italy’s...
Amazon to Challenge TiVo With Live TV Recorder
Amazon.com Inc. is developing a new device that records live...

Add new comment

Read our comment policy before posting your viewpoints