Cyprus’ Troika of international lenders – comprising the International Monetary Fund, European Commission and European Central Bank – is set to return to the island on Tuesday for its eighth evaluation of the country’s economic adjustment programme.
The programme, which the country’s leadership agreed to in the context of a €10 billion bailout agreement in March 2013, is expected to come to completion on March 31, 2016.
According to local news sources, the international delegates will remain in Cyprus until November 13, focusing all the while on the country’s high levels of Non-Performing Loans and strengthening the supervisory framework for the restructuring of loans.
Troika’s return to the island follows positive developments in the course of the local economy, including its upgrade by rating agency Fitch, as well as the Government’s third bond issuance since 2013.
These signs of progress have not gone unnoticed by Cyprus’ lenders. Indeed, last week IMF Spokesman Jerry Rice expressed his view that the economy has recovered significantly, revealing that the ability of borrowers to service their debts has strengthened.
Moreover, IMF Cyprus Representative Vincenzo Guzzo has deemed the reduction of high NPLs a high priority, adding that attention should not only focus on the banks’ capital but also on the broader economy.