Eurogroup finance ministers have given their formal approval for Cyprus to exit its 3-year Economic Adjustment Programme, which officially expires the 31st of March. At a Brussels meeting, Cyprus Finance Minister Harris Georgiades presented a report on Cyprus’ progress in implementing the reforms and complying with the requirements under its €10 billion programme that was concluded in March 2013.
Georgiades said that Cyprus is determined to continue with reforms contained in its Economic Adjustment Programme that are still pending, which include the privatisation of the Cyprus Telecommunications Authority (CYTA).
Cyprus drew €7.25 billion from the total assistance sum available of €10 billion and beat all projections of a sharp drop in its gross domestic product (GDP), achieving a growth of 1.4% last year after a four year recession. It also managed to keep its sovereign debt to about 106% of its GDP, 20 percentage points below projections.
Cyprus is the fourth member of the euro area to exit its bailout following Ireland, Spain and Portugal. Speaking to reporters Georgiades said: “We had the chance to review the good progress achieved during the last three years, which saw the stabilization of the banking sector, the consolidation of public finances, the promotion of much-needed structural reform, the re-establishment of market access and, primarily, the return to positive growth rates.”