Representatives from the troika of Cyprus’ international lenders, the International Monetary Fund, European Commission and the European Central Bank, recently visited Cyprus for conducting their 4th post-scheme investigation following the islands recent withdrawal from the economic adjustment programme as agreed with the terms of the bailout.
The monitoring operation is set to be finalised within the next week as Troika leaders are expected to conduct their reviews via meetings with various ministers and parliamentary party leaders on the island.
Cyprus officially completed the adjustment scheme back in in 2016, and continual intermittent observation by the Troika lenders should be conducted twice a year until 75% of the bailout granted by the European Stability Mechanism has been paid off, of which the borrowed amount by Cyprus totalled almost €7.5 billion.
The monitoring focuses mainly on key macroeconomics of the island and any financial developments regarding foreclosures legislation, insolvency framework and other fundamental matters such as the national reform programme, tourism matters, real estate and investment options.
The main issues the island faces at the moment are interruptions in the resolution of title deeds, Non-performing loans (NPLs) and the restructuring of loans, as well as finding appropriate levels of taxation; which will all be the focus of meetings at the Central Bank in the coming months.
After the mission concludes their visit, a general outcome of the monitoring will be issued as a circular to the islands chief executives. The Troika’s next post-programme monitoring visit to the island will be in September later this year.