Cyprus creditors back latest bailout stage

International creditors said on Wednesday that Cyprus was on track to complete the latest stage of its bailout program, making the eurozone country eligible for additional funds and participation in the European Central Bank’s stimulus program.

A team from the so-called troika of the European Commission, European Central Bank (ECB) and International Monetary Fund completed a visit earlier this month to scrutinize reforms by Nicosia.

The troika bailed out Cyprus in 2013 to prevent a banking collapse, but the latest tranche of loans had been held up while the Cypriot government pushed through reforms on foreclosures and insolvency.

“Staff-level agreement has been reached on policies that could serve as a basis for completion of the (bailout) review,” the three lenders said in a joint statement.

Formal approval by the EU and IMF to let the cash start flowing again “will be initiated shortly,” it said. But the lenders said that Cyprus “should maintain the structural reform momentum.”


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