Economic adjustment should strengthen real economy, says House President

The measures implemented under the economic adjustment programme should help strengthen the real economy, which despite the progress achieved, is still hampered by the decisions taken during the 2013 financial crisis, House of Representatives Demetris Syllouris has said.

Syllouris received on Tuesday a six-member delegation of a mission by the institutions in the context of surveillance of the Cypriot economy after the conclusion of the three-year economic adjustment programme financed by the EU and the IMF. Cyprus exited its bailout in March 2016.

According to a press release issued by the Parliament, the meeting covered the prospects of the Cypriot economy, the fiscal policy guidelines and the priorities concerning structural reforms.

Syllouris and the mission delegates also discussed ways of improving and resolving the main problems hampering the Cypriot economy, inter alia, the high percentage of non-performing loans and Cyprus high public debt.

Stricken by continued recession and an ailing banking sector, the Cypriot government received in March 2013 a Euros 10 billion bailout funded by the EU and the IMF. Apart from fiscal consolidation measures, the bailout featured an unprecedented bail-in, the conversion of deposits over Euros 100,000 to equity to recapitalise the islands largest lender, whereas the second largest bank was resolved.

Source: Cyprus News Agency