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Financial Mirror (Cyprus) - - FRONT PAGE -

the econ­omy’s out­per­for­mance rel­a­tive to ear­lier pro­gram fore­casts. Nonethe­less, at B (low), the rat­ing un­der­scores the depth of Cyprus’ chal­lenges and heavy re­liance on EU fund­ing.”

DBRS also said that “in the long-term, ex­ploita­tion of off­shore nat­u­ral gas de­posits should pro­vide a ma­jor new source of in­come for the is­land econ­omy,” adding that the govern­ment es­ti­mates that cur­rent proven re­serves are likely to bring in net rev­enue of close to EUR 20 bln over the next 20 years (over 120% of 2013 GDP).

“If man­aged pru­dently, the as­so­ci­ated fi­nan­cial in­flows could help to sig­nif­i­cantly re­duce Cyprus’ vul­ner­a­bil­ity to shocks.

In ad­di­tion, re­lated in­vest­ment and lower do­mes­tic en­ergy costs could have an­cil­lary ben­e­fits for the Cypriot econ­omy. The pace of de­vel­op­ment in the gas sec­tor could nonethe­less be af­fected by re­la­tions with Turkey,” it noted.

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