Cyprus “emerges from economic crisis”

Cyprus has not only concluded the bailout memorandum it signed with its international lenders in 2013, but it has also emerged out of the economic crisis, according to Deputy Government Spokesman Victoras Papadopoulos.

Asked to comment on the first post-programme fact finding mission to Cyprus by IMF representatives, Papadopoulos said that the Cypriot economy is once again on solid foundations, with high marks in its productivity indexes.

In statements at the Presidential Palace, the Deputy Government Spokesman said that rating agencies already raised Cyprus’ rating, being now one tier short of investment grade. He added that the state budget is balanced and the country has the biggest primary surplus among Eurozone member states, with a positive outlook.

Problems, such as unemployment, persist, Papadopoulos acknowledged, adding however that unemployment rates fell from 15% to 12%. He also said that non performing loans are declining on a monthly basis and the Bank of Cyprus managed to repay all of the 11.6 bln euros it received in emergency funding, or ELA.

“Therefore we believe that the economy is again now on solid foundations,” Papadopoulos concluded.

Recently, Standard & Poor’s upgraded its assessment of Cyprus to BB+ from BB, with a stable outlook.