BUSINESS

Cyprus expects to restore bailout aid flow

Cyprus said on Tuesday it hopes to re-establish a flow of aid from international lenders after some issues were resolved in a disputed foreclosures bill that lenders demanded for funds to be released.

The European Union and International Monetary Fund withheld about 435 million euros in a new tranche of aid amid legal challenges to the bill allowing mortgage lenders to quickly repossess properties in default.

Cypriot Finance Minister Harris Georgiades said he would explain the resolution of the case to lenders at a Eurogroup meeting this week.

“I will explain that we have done everything and the program is on track and consequently that the financing has to be re-established,” he told journalists at a conference in Nicosia.

Georgiades also told the conference that the island’s recession appeared to have bottomed out after the economy showed an improvement over the past four quarters.

The foreclosures law, which allowed compulsory repossessions on defaulted loans after a short period rather than the usual 10 to 15 years, was originally watered down by lawmakers whose amendments essentially rendered it ineffective.

[Reuters]

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