Two years after concluding a controversial €10 billion bailout that included a conversion of banking deposits over €100,000 into equity, coupled with capital controls, Cyprus has returned to growth following 14 consecutive quarters of recession, whereas fiscal targets set by the island’s lenders (European Commission, ECB and the IMF) have consistently outperformed.

“The return of growth is very good news for Cyprus and the Cypriot people. It shows that their efforts and difficult reforms are starting to pay off,” Rice told a press briefing.

He added that Cypriot authorities have implemented “a very complex restructuring of the banking system, they have successfully lifted all capital controls and they have returned to debt issues in the international market,” noting that public finances have improved considerably.

Rice also recalled that Cypriot authorities have recently improved insolvency and foreclosure frameworks, “key to programme reforms and critical in getting credit flowing again.”

“The objective is growth, job creation, living standards and it looks like significant progress has been made in Cyprus,” he said.

Rice said the IMF’s Executive Board is expected to consider approving the combined fifth, sixth and seventh reviews of the Cyprus programme during its June 19 meeting.

Source: Cyprus Mail