European Commission staff, in liaison with staff from the European Central Bank, visited Cyprus from 18 to 22 March 2019 to conduct the sixth post-programme surveillance (PPS) mission. The mission was coordinated with an International Monetary Fund (IMF) ‘Post Program Monitoring’ mission. Staff from the European Stability Mechanism (ESM) also participated in the mission on aspects related to the ESM`s Early Warning System.

In a written statement on Saturday, Prodromou said that important conclusions can be drawn from the assessment and the remarks made in it.

In general, he noted, the report refers to the huge progress of the Cypriot economy. “As it is noted, despite some signs of fatigue in the international economic environment, Cyprus stands out in 2019 with a strong growth of 4%”.

Prodromou added that it’s high time reforms in the public sector and the local government moved on. It is also important, he said, for the government’s proposals on the improvement of the investment environment to be approved.

“As the report of the supervisory authorities notes, the reform promoted by the government in the judicial system is also of great importance, while the implementation of the national health system towards which the government proceeds with consistency, is also of paramount importance” said the Spokesman.

He stressed, however, that non-performing loans remain a big challenge for the economy. “Therefore, efforts need to be continued, while we must be aware that the volume of problematic loans is not just an issue of government policy, but a matter that depends on and must be addressed by the political system as a whole and the society more widely”.

Source: InCyprus