Cyprus: 2010 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Cyprus
IMF Staff Country Reports, September 15, 2010
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- Cyprus: 2010 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Cyprus
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Bibliographic details
- Published: September 15, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455206414.002
Economic outlook
- Economic conditions have stabilized.
- The economy is projected to bottom out in 2010, giving way to a mild recovery in 2011 followed by stronger growth thereafter.
- The government largely shared the IMF staff’s assessment.
Fiscal policy and public debt
- Foremost policy challenge: achieve the official fiscal consolidation targets.
- Objective: put debt ratios on a declining path and provide more space to guard against risks to the financial sector.
Financial sector and banking risks
- Priority to provide fiscal space to guard against risks to the financial sector.
- Subjects noted: Banking, Commercial banks, Financial institutions, Loans, Nonperforming loans.
Social protection and pensions
- Further old-age pension reform is essential.
Structural reforms and competitiveness
- Structural reforms are needed to preserve competitiveness and enhance medium-term growth.