Troika reviews Cyprus’ progress

Troika reviews Cyprus’ progress

Nicosia, January 27, 2015/ Independent Balkan News Agency

By Kyriacos Kyriacou

A Troika technical mission began contacts in Nicosia on Tuesday to review the implementation of Cyprus’ financial assistance programme.

The contacts are taking place at the Central Bank, the Finance Ministry and the Directorate General for European programmes, Coordination and Development.

The mission is not a fully-fledged review because Cyprus is in breach of the programme terms, as the House of Representatives postponed the implementation of a law providing for the foreclosure of mortgaged property until January 30, a crucial prerequisite of the fifth review that took place last July. A fully fledged review can only take place once the law on foreclosures comes into force.

Cyprus Central Bank Spokeswoman Aliki Stylianou said that the technical mission will hold contacts until February 5.

The contacts are part of the review of the programme implementation since the last technical mission in November, she said, noting that the mission will also hold contacts with credit institutions.

Asked whether the mission will evolve into a fully-fledged mission, Stylianou said this depends on the developments with regard to the law on foreclosures.

The mission is expected to complete discussions on the last bill of the insolvency framework. The Parliament insists that the insolvency framework should be implemented concurrently with foreclosures. The House Plenary is expected to take decisions on the issue during its meeting next Thursday, one day before the suspension of the foreclosure law expires.

The Cypriot programme`s last review took place in July 2014, while the IMF postponed its decision to disburse its share of the sixth tranche totaling €436 million.

Excluded from the financial markets since May 2011, Cyprus concluded in March 2013 with the EU and the IMF on a €10 billion bailout to avert the collapse of its banking sector and cover its financing needs.