€150m of EU rescue package is approved for Cyprus

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ESMFollowing the positive assessment of the third quarterly review of the Cyprus macroeconomic adjustment program, the European Stability Mechanism (ESM) has approved the disbursement of €150 million to the island. ‘This disbursement marks another successful completion of the review and the authorities’ commitment to the program. It is important to maintain the reform momentum as many challenges still lay ahead’, ESM Managing Director Klaus Regling said. The current disbursement will bring the total amount of ESM financial assistance for Cyprus economy to €4.75 billion. Approximately €9 billion of the remaining funds designated to Cyprus by the ESM is planned to be paid in quarterly disbursements until 2016. Cyprus and the so-called Troika of international lenders – European Commission, International Monetary Fund and the European Central Bank – agreed last year on €10 billion bailout for Cyprus. This amount will cover the island’s financing needs and recapitalize the banking sector. Another European official Eurogroup President Jeroen Dijsselbloem said during his visit to Cyprus that he expected the island to recover within a short period of time and no further measures were on the cards. ‘I don’t think that there needs to be further steps from the Eurogroup or the Eurozone. I think that the program is being very effective,’ he said after his meeting with the Cyprus Finance Minister.
Cyprus economy has successfully passed three evaluations, performing better than expected.
Cyprus has successfully passed three evaluations, performing better than expected. Cyprus economy has a lot of benefits, please read more about key benefits of Cyprus. The Finance Minister Harris Georgiades said Cyprus was fully committed to restoring the prospects of the Cypriot economy ‘not to satisfy third parties but to serve the best interests of our country’.