An informal meeting of eurozone finance ministers on Friday hailed the progress made by Nicosia on its fiscal adjustment program and approved the disbursement of 1.5 billion euros of bailout funds by the end of the month.
“The Eurogroup welcomes the conclusion of the troika’s first review mission that the adjustment program for Cyprus is on track,” a statement issued by the Eurogroup said.
“The Cypriot authorities have taken decisive steps to stabilize the financial sector, meet the fiscal targets and taken structural reforms forward. Because the short-run economic outlook remains difficult and subject to considerable uncertainty, continued full and timely policy implementation remains essential for the success of the program,” the statement read.
The eurozone ministers also expressed their satisfaction at the Bank of Cyprus being taken out of resolution on July 30 and at relaxed administrative measures, adding that Cypriot authorities have taken further action to reform the cooperative credit institutions sector and have set out a clear agenda to restructure and recapitalize other financial institutions.
“The Eurogroup looks forward to the swift implementation of the Anti-Money Laundering action plan and welcomes that Cyprus has taken effective action toward correcting the excessive deficit by 2016 as recommended,” the Eurogroup said.
It added that it “endorses the disbursement of the next tranche of financial assistance to Cyprus following the fulfillment of the prior actions and the completion of the relevant national procedures. The disbursement of 1.5 billion euros is foreseen to take place by end-September, after the formal approval by the ESM Governing bodies.”
The board of the International Monetary Fund will decide on the disbursement of another 86 million euros to Nicosia on Monday.