Cyprus is likely to successfully complete its three-year bailout programme by the end of March, according to a source inside the EU.
In 2013 a £10 billion bailout was agreed from the European Commission, the European Central Bank and the International Monetary Fund after the country’s economy collapsed. Changes to the running of the economy had to be made in order to receive the bailout funds, most of which have been completed; however, one final reform needs to be finalised in order to receive the last 400 million euro pay-out.
The European Commission, the European Central Bank and the International Monetary Fund agreed in 2013 a three-year rescue plan of 10 billion euros (7.63 billion pound) for the Mediterranean island after its financial sector collapsed because of its exposure to the Greek economy.
“I am quite confident that prior actions will be fulfilled before the end of the programme and that therefore the disbursement will actually take place,” an official told Reuters.
In other economic news from the region, Greece has exited 33 months of deflation, finally seeing a light at the end of the tunnel after months of economic decline. Greece has had to implement strict cuts to public services and benefits in order to comply with conditions for an EU bail-out.