The Canadian Press - ONLINE EDITION

International creditors begin 3rd assessment of Cyprus' financial rescue program

  • Print

NICOSIA, Cyprus - International creditors were back in Cyprus on Wednesday to gauge whether the country is living up to the terms of its financial rescue program.

Cyprus' third bailout review comes after earlier assessments concluded that the country was on track, but warned that there was no room to slacken efforts.

EU and International Monetary Fund officials will focus on Cyprus' banking sector, which was hit hard under the terms of the country's 10 billion-euro ($13.6 billion) rescue agreed in March. The deal saw authorities seize large portions of uninsured savings in the two largest banks and impose capital controls. The second-largest lender was shut down.

Banks are struggling to cope with bad loans in an economy. Some 46 per cent of all loans, or 19 billion euros ($26 billion), are considered soured. That's the equivalent of 120 per cent of the gross domestic product.

Capital controls, such as daily cash withdrawal limits of 300 euros, have been significantly eased since March, but many remain in place. Government officials say they expect to lift most controls in the coming months. The last step will be allowing unlimited money transfers abroad.

EU and IMF officials will also examine government spending cuts, tax revenue, and efforts to expedite bailout-mandated privatizations of state-owned enterprises in order to raise 1.4 billion euros ($1.9 billion).

Cyprus Central Bank spokesperson Aliki Stylianou said the review will continue through February 12 when the inspectors will depart.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Andrew Ladd reflects on the season

View more like this

Photo Store Gallery

  • Young goslings are growing up quickly near Cresent Lake in Portage La Prairie, Manitoba- See Bryksa 30 Day goose project- Day 11- May 15, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Someone or thing is taking advantage of the inactivity at Kapyong Barracks,hundreds of Canada Geese-See Joe Bryksa’s goose a day for 30 days challenge- Day 15- May 22, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you think Manitoba needs stronger regulations for temporary workers?

View Results

View Related Story

Ads by Google