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Cyprus

Troika to examine compatibility of bills on insolvency with Cyprus’ adjustment programme

Cyprus’ international creditors are to examine the compatibility of the bills on insolvency framework approved on Saturday by the House of Representatives with the agreed framework of the economic adjustment programme signed between Cyprus and the Troika (EC, ECB and the IMF).

An important step has been made with the approval of the insolvency framework, a source close to the creditors told CNA on Sunday.

The same source said it was important that the House did not vote for another postponement of the implementation of legislation on foreclosures, thus fulfilling the prerequisite of the fifth assessment of the country’s economic adjustment programme.

Regarding the next steps, the Eurogroup will meet on April 24 in Riga, Latvia, to be briefed on developments and then a date will be set for Troika`s new visit to Cyprus.

Meanwhile, the IMF is due to decide on the disbursement of €86 million of its contribution as part of the programme`s sixth tranche.

The disbursement of the amount had been frozen due to the postponement of the implementation of the legislation on foreclosures which was one of the important prerequisites for the completion of the fifth evaluation.

Cyprus has already received €350 million from the European Stability Mechanism.

The House plenary approved yesterday by majority vote the foreclosures framework, during an extraordinary session and following a long debate. The parliamentary parties voted in favour of the foreclosures bills with a majority of 33 votes in favour in some cases and more positive votes in other cases.

CNA

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