Cyprus has been on the radar of the global economic scene ever since its banking system turmoil prompted the government to take a bailout loan from the “troika” in March 2013. Brokers on the island felt the pinch due to increased worries about the solvency of the island’s banks.
After the market turbulence culminated in March 2013 when the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF) devised a bailout package for the country’s aimed financial system, the country had to commit to some extraordinary austerity measures and structural reforms.
“Troika” reaffirms that Cyprus is on track with the economic reform programme
The latest review of the country’s progress has just concluded with the staff teams from the EC, the ECB and the IMF reaffirming that Cyprus is on track with the economic reform programme.
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The joint statement issued by the “troika” members emphasized strong improvement in public finances and the implementation of important reforms. The country’s parliament has recently voted on the adoption of new insolvency and foreclosure procedures.
The legislative effort has been designed to stem the rise of non-performing banking loans.
Evidently, brokers in Cyprus have nothing to worry about when it comes to the country’s progress on “troika” mandated reforms. As long as the government manages to deliver on its promises, bailout funds will continue to be disbursed on time.
Unlike Greece, the Cypriot government has been much more aggressive in cutting spending and delivering structural reforms to appease its creditors. In the meantime, the brokerage industry has become an important source of job creation on the island.