Cyprus: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus

December 3, 2018

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Cyprus: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Cyprus, (USA: International Monetary Fund, 2018) accessed November 18, 2024

Summary

Cyprus is recovering strongly from the 2012–13 crisis. GDP growth is projected to remain above 4 percent in 2018–19, buoyed by services and foreign-financed construction. Unemployment is rapidly declining while large fiscal primary surpluses are putting public debt back on a declining path. Nevertheless, crisis legacies continue to weigh on the banking system. In early 2018, difficulties in the Cyprus Cooperative Bank led the authorities to intervene, albeit at a significant fiscal cost. In the process, a package of legislative measures strengthening the insolvency and foreclosure regime was also approved, which is now catalyzing the cleanup of bank balance sheets. These developments have led to a sovereign ratings upgrade, restoring Cyprus’s investment grade status.

Subject: Banking, Credit, Financial institutions, Fiscal policy, Fiscal stance, Loans, Money, Nonperforming loans, Public debt

Keywords: CR, Credit, Cypriot state, Cyprus economy, Europe, Fiscal stance, Global, IMF staff estimate, ISCR, Liability positions vis-à-vis nonresident, Loans, Nonperforming loans, NPL resolution

Publication Details

Pages:

80
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/337
Stock No:

1CYPEA2018002
ISBN:

9781484387344
ISSN:

1934-7685

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