Cyprus FinMin satisfied with the 9th post-program surveillance report findings as presented at the Eurogroup

Minister of Finance, Constantinos Petrides, expressed his satisfaction with the findings of the 9th report on post-program surveillance of the Cypriot economy, which was presented to the Eurogroup, during his intervention at the teleconference of the 19 Eurozone Ministers.

 

In his intervention, the Minister of Finance noted that the conclusions of the three institutions (Commission, IMF and ESM) are similar to those of the government, while he referred specifically to dealing with the legacy of non-performing loans, noting that it remains Cyprus` top priority.

 

The Minister briefed his counterparts on the huge progress made since 2014 in reducing non-performing loans, stressing that non-performing loans fell from €28 billion in December 2014 to around € 6 billion in mid-2020 – a reduction 79%, the 3rd largest among the EU, with the Community average at 50%.

 

“Non-performing loans are one of the problems highlighted by the financial crisis, as the rate of non-performing loans of new loans after 2016 is only 2% and compares favorably with the European average,” he said.

 

“Undoubtedly,” he said, “resolving an issue that has arisen over a long period of time will require sufficient time and collective effort to resolve it definitively.”

 

“It is for this reason that the Government has drawn up an ambitious action plan to deal with non-performing loans that are still within the banking system, which the Minister has elaborated in detail on his counterparts,” the Minister said, noting that “the goal is how non-performing loans are reduced by half within a period of 2 years”.

 

Concluding, he noted that “the main goal of Cyprus` policy remains the preservation of macroeconomic stability in order to facilitate growth and job creation.” In addition, “when economic conditions allow, the aim is to maintain a fiscal policy oriented towards positive primary surpluses, in order to facilitate the rapid reduction of public debt at a satisfactory pace,” the minister explained.

 

Source: Cyprus News Agency

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