News Economy European Commission: Cyprus to exit recession

European Commission: Cyprus to exit recession

There is a high possibility that Cyprus will exit recession within a short time, according European Commission official sources.
The European Commission, as a constitutional part of the troika (troika is vernacular for the 3-part commission that is charged with monitoring the Euro debt crisis), estimates that Cyprus’ bailout program has gradually yielded.
 This assessment has been made by Troika technocrats who recently visited Cyprus to carry out their seventh evaluation of the bailout adjustment programme, and the representative of the International Monetary Fund, Jerry Rice.
 Meanwhile, the same EC sources underline that Finance Minister, Harris Georgiades, has stressed there will be no need for additional fiscal consolidation measures, unless it is really necessary.
European Commission’s points of view:
-Cypriot authorities seem to be strongly committed to meet the limits set by the program.
 -The government must radically deal with non-performing loans.
- It is imperative for the House to pass bills for the sell-off of non-performing loans, from banks, to third parties.
 - The authorities must promote deep structural reforms, related to foreclosures and restructuring of the public service.
 -The EC foresees Cyprus exit recession, as well as a slight economic growth. (0.5% positive rate in 2015)
In this framework, the country does not seem to need the whole amount of €10bn, emerging from the bailout program.