The International Monetary Fund said Friday it welcomes Cyprus’ economic recovery and the prudent macroeconomic policies, as the island seeks consent for early repayment of part of the bailout loan it received from the IMF.
“We welcome the strengthening economic recovery and generally prudent macroeconomic policies, as reflected in favourable financial market conditions, that have enabled Cyprus to take this step,” Vincenzo Guzzo, IMF’s representative in Cyprus told the Cyprus News Agency.
Finance Minister Harris Georgiades said Thursday the cost of a significant part of the €280m IMF loan was higher than the cost the Republic would incur if it borrowed from international markets, after a drop in yields.
He said there was a difference of 0.5 per cent and therefore it would make sense to repay early part of the loan Cyprus has received by the IMF, in the framework of the adjustment programme.
The cabinet, he added, has authorised him to start consultations with the IMF and the European Support Mechanism to get their consent.