Cyprus has received a positive seventh review of its continuing financial adjustment program by Eurogroup.
The Eurogroup is set to disperse the island's 500 million euro aid package next month. Eurogroup President Jeroen Dijsselbloem, along with Commissioner Pierre Moscovic and ESM Chief Klaus Regling, all applauded the nation on its economic efforts and strides.
The Eurogroup confirmed that Cyprus consistently meets its requirements, banks are showing signs of continual progression, and growth expanding reforms are displaying advancements. Cyprus' main issue is to tackle the large amount of non-performing loans, so as to expand credit growth and to strengthen its banks.
The Eurogroup described Cyprus' next scheduled October bailout, "The Eurogroup commends the Cypriot authorities for the progress that has been made to date, and calls on them to keep up the reform momentum. The timely implementation of the growth-enhancing reform agenda, including privatisation and public administration reform, is essential in order to restore Cyprus' growth potential, while safeguarding the protection of the most vulnerable groups."
The collective body of eurozone Finance Ministers added, "We consider that the necessary elements are now in place to launch the relevant national procedures, paving the way to the formal approval by the ESM governing bodies of a disbursement of EUR 500 million in October. Concurrently, the IMF Executive Board is expected to decide on the disbursement of about EUR 125 million."