Eurozone countries have agreed to pay Cyprus another installment of financial aid as the country progresses with its economic reforms, the Eurogroup of finance ministers said on Monday.
The European Stability Mechanism, the euro zone’s rescue fund, is set to pay €100 million to Cyprus by the end of the year while the International Monetary Fund is due to sign off on a further €86 million on December 20 the Eurogroup said.
In a written statement, the Eurogroup welcomed the conclusion of the troika’s second review mission that the adjustment programme was on track.
“Macroeconomic conditions are developing in line with programme projections, albeit uncertainty remains high. Fiscal consolidation is advancing in line with the agreed consolidation process,” the Eurogroup said.
It added that structural reforms were progressing, “although in some cases further efforts are required”. Progress continues to be made as regards the recapitalisation and restructuring of the financial sector, including a further gradual relaxation of administrative measures.
“We commend the Cypriot authorities for the progress achieved in this review and underline that a full and timely policy implementation remains essential to address the many challenges that the Cypriot economy is facing,” said the Eurogroup. “In particular, we welcome the firm commitment of the Cypriot authorities to strengthen the privatisation plans as agreed with the troika institutions.”