Troika happy with progress in Cyprus

The streamlining program of the Cypriot economy remains on course and recession projections for 2014 have been revised from 4.8 percent to 4.2 percent, according to a statement by the island’s international creditors which opens the way for the disbursement of the fourth bailout installment worth 686 million euros.

However, the statement added, there remain some significant challenges on the horizon such as non-performing loans, the streamlining of public finances on a sustainable basis and the strengthening of institutions.

“The Cypriot program remains on course, the fiscal targets for the first quarter of 2014 have been achieved with a considerable margin... and the banks are proceeding to their restructuring plans,” the common statement of the European Commission, the European Central Bank and the International Monetary Fund said on Saturday.

“Progress in all significant sectors of the economy has been confirmed, such as in structural reforms, the restructuring of the banking sector and the fiscal control,” said Cypriot Finance Minister Harris Georgiades.