Cyprus needs to complete three prior actions in order for its international lenders, the Troika (EC, ECB, IMF) to accept the disbursement of its 5th bailout tranche, CNA sources say.
Regulations on the Fiscal Council should be adopted, a Bill on the composition of the Resolution Authority must be approved and a report on what actions have been implemented in the past six months in relation to money laundering should be submitted to OECD by the end of May.
The Troika`s prior actions as well as discussions on a draft updated Memorandum of Agreement, the basis of Cyprus` bailout of March 2013, both as regards fiscal matters and reforms as well as the financial sector will be discussed at a meeting on Friday morning, at the Ministry of Finance between Finance Minister Harris Georgiades, top Troika mission officials and Central Bank Governor Chrystalla Georghadji.
The updated MoU is expected to be finalised at the meeting.
In the meantime, Giorghadji meets on Thursday afternoon with the Troika chiefs to discuss the provisions of the updated MoU on the financial sector.
Cyprus received a €10 billion bailout from the Troika (IMF, ECB and EU Commission) in March last year which featured a haircut on deposits over €100,000. However amid the continuing contraction of the economy and the burst of the housing bubble, non performing loans soared above €26 billion, worsening the problems facing the banking sector.