Cyprus set for 16th post-memorandum economic evaluation

The 16th evaluation of Cyprus’ post-memorandum economic situation is set to commence next Tuesday and conclude on Friday, as confirmed by the island’s lenders.

The evaluation will encompass an extensive review of public finances, economic prospects, and challenges faced by the economy, as well as the state of the financial sector.

According to the Cyprus News Agency (CNA), which cited sources close to the matter, meetings with Cypriot authorities will delve into fiscal and financial conditions based on 2023 outcomes.

What is more, discussions will address challenges arising from geopolitical tensions, including the war in Ukraine and the Hamas-Israel conflict, along with potential repercussions from disruptions to free navigation due to Houthi attacks in the Red Sea.

In addition, developments in the energy and healthcare sectors will also be scrutinised during the evaluation.

The evaluation panel includes technocrats from the European Commission, the European Central Bank (ECB), the European Stability Mechanism (ESM), and the International Monetary Fund (IMF).

It is noteworthy that these evaluations occur biannually until 75 per cent of the financial assistance, totalling €6.3 billion to the ESM, is repaid.

It should be noted that Cyprus had already repaid its loan from the IMF, with a total value of €1 billion, in February 2020.