Troika says NPLs is still the number one priority, must “speed up reforms”
Increasing the pace of reform will be essential for the island’s economic adjustment programme, the Troika of international lenders said in a joint statement on Monday, adding that addressing the high level of non-performing loans held by banks is the number one priority. Staff teams from the International Monetary Fund, the European Commission and the European Central Bank concluded their seventh review of EUR 10 bln bailout programme that started in March 2013. The government is optimistic it will conclude the programme by March next year and will probably not utilise all of the funds allocated.
“Cyprus’s programme, which is supported by financial assistance from the European Stability Mechanism (ESM) and the IMF, aims to promote economic recovery and job creation by restoring financial sector stability, strengthening the public finances, and implementing reforms to increase long-run growth,” the joint statement said.
According to the lenders, “the teams have reached staff-level agreement on policies that could serve as a basis for completion of the review, reflecting the progress and policies under the program”.
They said that “the financial situation of the banks is gradually improving, and there is tentative evidence that the slow pace of debt restructuring is picking up. The fiscal targets in the first half of 2015 were met with substantial margins. In addition, the authorities are making progress on their structural reform agenda”.