Cyprus Economy: The continuous recovery and the 4% expected growth
After the financial crisis that Cyprus has experienced in previous years, it seems that its economy is recovering according to statements from the presidential office.
“The return after 6.5 years to investment grade is the strongest confirmation of the prudent management that we followed and continue to follow,” President Nicos Anastasiades tweeted. “Our economy is recovering with the best omens being confirmed,” he said.
Finance minister, Harris Georgiades, said that one of the most important economic policy objectives has been achieved. “The growth perspective is reinforced. Our country is financially shielded. The difficult decisions we were called upon to take are being justified,” the minister tweeted.
The acquisition of the Co-op’s healthy operations by Hellenic Bank and the transformation of the residual state-owned lender into an asset management company tasked with managing a non-performing loans portfolio of €7bn, “will significantly reduce the banking sector’s NPEs [non-performing exposures] to an estimated one-third of total loans from one-half before”, the rating company said.
“We also expect that various other legislative changes will support Cypriot banks’ efforts to further reduce bad assets over the medium term. We assume additional support to the banking sector via the government’s balance sheet from now through 2021 will be moderate.”
The Cypriot economy is projected to expand this year four per cent and expected to grow another 3.5 per cent next year.
Source: Cyprus Mail