Southern Cyprus will receive 600 million euros, via approval of the board of the European Stability Mechanism, the ESM.
This cash boost comes after a positive assessment of the fourth-quarterly survey of southern Cyprus’s macroeconomic adjustment program and after approval of a supplement “Memorandum of Understanding” (MOU) with Cyprus “from the ESM board.
“Cyprus continues to make good progress in many areas, particularly in terms of the budgetary targets and steadily moving out of recession”. The successful completion of the examination shows that the Cypriot authorities are strongly committed to the program.
Further efforts are needed to successfully manage the challenges that remain, such as the abolition of capital controls, reduce non-performing loans, generate sustainable economic growth and reduce unemployment, said CEO Klaus Regling of ESMS.
The actual payment will bring the total amount of financial assistance from the ESM to the south side up to 5.35 billion euros. The remainder of the approximately 9 billion euro ESM committed to paying to Cyprus is scheduled to be paid in quarterly payments until 2016.