Cyprus: Ninth Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Waiver of Applicability of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Cyprus
IMF Staff Country Reports, January 29, 2016
Source details
- Canonical URL
- Cyprus: Ninth Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Waiver of Applicability of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Cyprus
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Bibliographic details
- Published: January 29, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498312646.002
Economic recovery and structural reform progress
- Findings:
- The economic recovery of Cyprus has continued to gain strength.
- Progress on the structural reform agenda has been modest.
- Discussions stressed the need to avoid further delays in implementing structural reforms necessary to reinvigorate growth and create employment.
- Policy implications:
- Accelerate implementation of pending structural reforms to support sustainable growth and job creation.
Banking sector, nonperforming loans (NPLs), and lending
- Findings:
- A range of policies have been discussed to accelerate reductions in nonperforming loans to revive lending and boost growth.
- Lingering vulnerabilities remain in the banking sector.
- Policy recommendations discussed:
- Implement measures to reduce NPLs and revive bank lending to support economic activity.
Fiscal position and public debt
- Findings:
- Discussions stressed the need to lock in fiscal gains given still-high public debt.
- Policy recommendations:
- Preserve fiscal consolidation achievements to reduce public debt vulnerabilities.
Macroeconomic outlook, unemployment, and inflation
- Findings:
- Despite lingering banking-sector vulnerabilities and implementation delays in structural conditionality, the macro economy of Cyprus continues to improve.
- The unemployment and inflation projections have been adjusted downward.
Subjects and keywords (as listed)
- Subjects: Banking, Credit, Financial institutions, Loans, Money, Nonperforming loans, Public debt, Revenue administration
- Keywords: authorities' privatization plan, bank liquidity, CR, Credit, executive board's discussion, Global, IMF Deputy managing director, insolvency regime, ISCR, loan restructuring, Loans, Nonperforming loans, reform implementation