Reuters: Cyprus on track with bailout reforms, EU report says

02 September 2013

Cyprus is successfully carrying out the reforms necessary under its €10 billion bailout programme and will get the next tranche of financial help as planned, a draft report by the European Commission showed on Monday

Inspectors from the European Commission, the European Central Bank and the International Monetary Fund - together known as the troika - visited Cyprus in the second half of July to assess progress on strengthening public finances. "Staff concluded that Cyprus' economic adjustment programme is on track", said the draft report, obtained by Reuters.

The report, which must be approved by EU finance ministers, means the next tranche of aid - €1.5 billion from the eurozone's bailout fund - will be disbursed. The sum will not be in cash but in the form of bonds that will be used to recapitalise the island's financial sector excluding the Bank of Cyprus, which has a separate restructuring plan, and Cyprus Popular Bank, which has been closed down.

Full article

© Reuters