Deputy Spokesman of the International Monetary Fund (IMF) William Murray has announced that a new round of contacts of the Troika will begin on January 29 with the Cypriot authorities, in the context of the third review of the Cypriot programme.
Replying to questions, Murray said the IMF along with the European Central Bank and the European Union have scheduled to begin talks in Nicosia with the Cypriot government on January 29, and that the talks are expected to last two weeks.
Murray noted that the aim of the mission was to reach an agreement on the policies that will support the conclusion of the third review of the programme.
He said the talks would cover a wide range of issues, including recent economic developments, the policies in the financial system, the fiscal policy, and Cyprus` progress in institutional reforms.
Asked when capital controls would be lifted, Murray said additional steps in this direction were expected this year, in line with the government’s roadmap, and pointed out the importance of tangible progress in the recapitalisation of the banks.
He added that the roadmap provides for the gradual lifting of restrictions in an orderly manner, combining such steps with tangible progress in the banking sector recapitalisation strategy, and maintaining flexibility, in order to safeguard financial stability.
Commenting on remarks that IMF projections for the recession in Cyprus were wrong, Murray reiterated that the latest report estimated a -7.7% recession in 2013 and – 4.8% in 2014, and 0.9% growth in 2015.
In March 2013, Cyprus averted a collapse of its banking sector after agreeing on a €10 billion bailout with the Troika (EC, ECB and IMF), that featured a haircut of banking deposits over €100,000 in its two larger lenders and the winding down of the island`s second largest lender, as well as an array of public spending cuts and salary reductions.
