Cyprus: Fifth, Sixth, and Seventh Reviews Under the Extended Arrangement Under the Extended Fund Facility; Request for Waiver of Nonobservance of a Performance Criterion; and Rephasing of Access
IMF Staff Country Reports, June 23, 2015
Source details
- Canonical URL
- Cyprus: Fifth, Sixth, and Seventh Reviews Under the Extended Arrangement Under the Extended Fund Facility; Request for Waiver of Nonobservance of a Performance Criterion; and Rephasing of Access
Other formats
Bibliographic details
- Published: June 23, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513546940.002
Overview
- Examines Cyprus’s Fifth, Sixth, and Seventh Reviews under the Extended Arrangement under the Extended Fund Facility, a Request for Waiver of Nonobservance of a Performance Criterion (PC), and a Rephasing of Access.
- Concludes that economic developments have been encouraging and program performance has been generally strong.
- Highlights the continuing importance of the structural reform program for public finances and growth.
Economic developments
- The recession in 2014 was milder than expected.
- GDP growth was positive in the first quarter of 2015 for the first time in almost four years.
Program performance and conditionality
- Program performance has been generally strong.
- Compliance with quantitative conditionality has been good.
- The authorities have advanced structural reforms.
Banking sector and financial stability
- Further efforts are needed to:
- Strengthen banking supervision.
- Restructure banks.
- Nonperforming loans and solvency remain central subjects of concern (subject terms listed in the report include Nonperforming loans, Solvency, Financial sector stability).
Policy implications and recommendations
- Continue and deepen the ongoing structural reform program to support public finances and growth.
- Prioritize banking-sector measures:
- Strengthen supervisory capacity.
- Advance bank restructuring plans to address remaining weaknesses.
Thematic focus areas (as described in the document)
- Asset and liability management
- Banking
- Debt restructuring
- Financial institutions
- Financial sector policy and analysis
- Financial sector stability
- Nonperforming loans
- Public debt
- Solvency
Source: Cyprus: Fifth, Sixth, and Seventh Reviews Under the Extended Arrangement Under the Extended Fund Facility; Request for Waiver of Nonobservance of a Performance Criterion; and Rephasing of Access (IMF Staff Country Report), June 23, 2015.
Content in this bundle
- _cr15155 — Executive Summary of Cyprus EFF-supported Program