Cyprus Mail
Business Cyprus

IMF second post-programme surveillance mission expected next week

A delegation from the International Monetary Fund (IMF) will arrive in Cyprus next week for talks with Cypriot officials and bankers as part of the island’s post bailout programme surveillance, a source said.

The delegation from the IMF, which made available €1bn in funds for Cyprus’s bailout programme, and was together with the European Commission and the European Central Bank part of the troika, which supervised the bailout, will look into the latest developments in the economy, a source familiar with the matter said in a telephone interview on Wednesday.

The IMF will discuss the fiscal impact of recent government decisions, such as the decision to upgrade the pay scales of health workers, an additional burden to public finances following the hiring of professional soldiers and the abolition of the immovable property tax last year, the source said.

The situation in the banking system, and in particular the progress in reducing non-performing loans, will also be on the agenda of the IMF delegation, the source said.

It will be the second time an IMF delegation visits Cyprus following the completion of the programme.

The Cyprus News Agency reported on Wednesday that the delegation will also meet Finance Minister Harris Georgiades and will also prepare a report after completing its visit to Cyprus.