The review, slated to last 10 days as opposed to previous five-day reviews, will encompass fiscal performance, the government’s reform effort, the tourist industry’s outlook, implementation progress of the Guaranteed Minimum Income, taxation reform, privatisation of semi-governmental organisations and economic prospects.
During the first phase of deliberations, meetings and discussions will be carried out by Troika technocrats, while the Cyprus mission heads are expected to arrive in Cyprus on Friday.
According to Undersecretary to the President and Reform Commissioner Constantinos Petrides after securing stabilisation, the time has come for Cyprus to focus on structural reform that will change it.
“We stand on our feet, during this period everyone’s attention turns to implementing the structural reforms that have been designed, many of which will come in the form of bills at parliament so that implementation can follow their passing,” he said. “We believe it is these structural reforms that will change Cyprus.”
He cited that a big step was taken with education reform, passed last week by parliament, and the ambitious overhaul of social policy via the Guaranteed Minimum Income scheme.
But another big step will be reforming the civil service, he added.
“We will use this government’s remaining time in office to implement these reforms,” he said.
Meanwhile, the service and tourism sectors in Cyprus appear stronger than anticipated, the heads of the association of certified public accountants (ICPAC) and the Cyprus Tourism Organisation said on Tuesday, following meetings with Troika technocrats.
“The service sector has shown no slump over the last two years, and remains one of the strongest pillars of the Cypriot economy,” ICPAC head Kyriacos Iordanou said.
He expressed confidence that Tuesday’s review will confirm that Troika demands on the issue of money laundering have been met fully.
A separate meeting between Troika officials and ICPAC is scheduled to touch on macroeconomic performance.
With regard to the potential impact developments in Greece might have on Cyprus, Iordanou conceded that some impact is unavoidable, but argued that Cyprus and Greece have been completely decoupled in several areas.
“This might even turn into an opportunity to attract investments and companies that may decide to relocate from Greece to more financially stable destinations,” he said.
“It seems that a pattern of companies moving from Greece to Cyprus has started to emerge.”
Source: Cyprus Mail
