By Stelios Orphanides
Officials of the former troika of Cyprus’s international creditors are in Cyprus for the third time since the island completed its adjustment programme 18 months ago as part of the post-programme surveillance, the Cyprus News Agency reported on Monday.
The officials of the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) are scheduled to meet with officials of the Ministry of Finance, the Central Bank of Cyprus, commercial banks and other institutions and business groups, including the Cyprus Chamber of Commerce and Industry, the Employers and Industrialists’ Federation and the Institute of Certified Public Accountants of Cyprus, the agency reported. It added that the IMF representatives are also on the island as part of consultations for the country report based on Article IV.
A central bank source said that the troika officials will review the performance of the Cypriot banking system and will ask for information about the non-performing loans which accounted in May for 46.2 per cent of total loans and stood at €23bn and what the banks are planning to further reduce them.
The troika officials will also review the island’s progress in reforming the public sector, the healthcare system and the insolvency framework before concluding this mission on Friday, the CNA reported.
The post-programme surveillance will continue until Cyprus repays 75 per cent of the €7.2bn of borrowed bailout funds.