Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

International creditors begin 3rd assessment of Cyprus' financial rescue program

NICOSIA, Cyprus - International creditors were back in Cyprus on Wednesday to gauge whether the country is living up to the terms of its financial rescue program.

Cyprus' third bailout review comes after earlier assessments concluded that the country was on track, but warned that there was no room to slacken efforts.

EU and International Monetary Fund officials will focus on Cyprus' banking sector, which was hit hard under the terms of the country's 10 billion-euro ($13.6 billion) rescue agreed in March. The deal saw authorities seize large portions of uninsured savings in the two largest banks and impose capital controls. The second-largest lender was shut down.

Banks are struggling to cope with bad loans in an economy. Some 46 per cent of all loans, or 19 billion euros ($26 billion), are considered soured. That's the equivalent of 120 per cent of the gross domestic product.

Capital controls, such as daily cash withdrawal limits of 300 euros, have been significantly eased since March, but many remain in place. Government officials say they expect to lift most controls in the coming months. The last step will be allowing unlimited money transfers abroad.

EU and IMF officials will also examine government spending cuts, tax revenue, and efforts to expedite bailout-mandated privatizations of state-owned enterprises in order to raise 1.4 billion euros ($1.9 billion).

Cyprus Central Bank spokesperson Aliki Stylianou said the review will continue through February 12 when the inspectors will depart.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates