Cyprus: Third Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Modification of Performance Criteria—Staff Report-press Release; and Statement by the Executive Director

IMF Staff Country Reports, April 1, 2014

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Canonical URL: Cyprus: Third Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Modification of Performance Criteria—Staff Report-press Release; and Statement by the Executive Director

Focus: strong ownership and implementation of Cyprus’s program under the Extended Fund Facility.
Political context: "Despite the difficult environment in which the authorities operate, the political commitment remains strong while every effort is being made to maintain strong social cohesion."
Assessment: "Steadfast implementation has produced tangible results with indications that the healing process is already under way."
Outlook: "Although a difficult adjustment is still ahead, with the guidance of EU and IMF staff, Cyprus has placed itself in a good position to continue along the agreed path."

Ownership and implementation:
- Emphasis on "strong ownership and implementation of its program."
- Implementation characterized as "steadfast" and producing "tangible results."
Social and political dimensions:
- Authorities are making "every effort" to "maintain strong social cohesion."
- Political commitment described as "strong" despite a "difficult environment."
Forward-looking judgment:
- The adjustment ahead is described as "difficult."
- Continued guidance from "EU and IMF staff" is highlighted as supporting Cyprus's position to "continue along the agreed path."

Subject: Banking, Credit, Financial institutions, Loans, Money, Nonperforming loans, Public debt, Revenue administration
Keywords: authority, country's financial system, CR, Credit, disbursement of SDR, Europe, executive board discussion, Global, ISCR, Loans, Nonperforming loans, program implementation, SDR, supplementary information