BUSINESS

Cyprus program 'on track,' outlook still risky: EU/IMF review

By Martin Santa

Cyprus's adjustment program is on track and the government's fiscal performance is better than anticipated, the country's international lenders said on Tuesday, but they cautioned that there were substantial risks to the outlook.

Last year, the Mediterranean island became the fifth country in the eurozone to seek a financial lifeline from the EU and IMF after it lost billions of euros on Greek bonds.

The joint statement from the European Commission, the European Central Bank and the International Monetary Fund said Cypriot GDP was expected to contract 4.8 percent in 2014, before rebounding to 1 percent growth in 2015.

Growth contracted by 6 percent in 2013, less than expected. [Reuters]

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