Republic of Cyprus

Cyprus Economy and the Macroeconomic Adjustment Programme

Due to the world economic recession, which resulted in severe losses in the Cypriot banking sector in Cyprus, on 25 June 2012, the Government of Cyprus submitted a request for support to the President of Eurogroup.

During the Eurogroup of 25th March the key elements of Cyprus’ macroeconomic adjustment program were agreed. In addition, the members of the Eurogroup agreed on a financial assistance package towards Cyprus amounting to 10 billion euros, with the European Stability Mechanism providing up to 9 billion euros and the International Monetary Fund approximately 1 billion euros.

On April 12, 2013, Eurogroup endorsed the Memorandum of Understanding on Cyprus’ Macroeconomic Program and the Loan Agreement, as agreed between the European Commission, European Central Bank and International Monetary Fund (Troika) and Cyprus. On April 30, 2013, the House of Representatives ratified the Memorandum of Understanding and the Loan Agreement.

Cyprus has repeatedly reaffirmed its commitment towards the implementation of the Memorandum of Understanding. Cyprus’ progress in implementing the MOU was positively assessed in the first two Troika reviews in July 2013 and November 2013.

The economic policy of the Government is based on three pillars, namely measures to ensure the return of stability in the banking sector, implementation of fiscal consolidation measures and lastly structural measures, with emphasis on the restructuring of the public sector.

In parallel, the Government is implementing a series of measures and actions with the aim of revitalising the economy, encouraging economic development and attracting foreign investment on one hand and on the other hand, mitigate the problems face by the vulnerable groups of the populations with particular emphasis in combating youth unemployment.

For more information:

Ministry of Finance

Ministry of Labour

Directorate General for European Programmes, Coordination and Development

Point of Single Contact Cyprus

Cyprus Investment Promotion Agency

Last Modified at: 22/06/2016 01:57:24 PM

No documents found