The European Commission (EC), European Central Bank (ECB), and the International Monetary Fund (IMF), also known as the Troika, have recently completed their fourth review of the Cyprus economic programme and have concluded that its implementation remains on track.

According to the Troika official statement, “Fiscal targets for the first quarter of 2014 were met with a considerable margin, reflecting better-than-projected revenue performance and prudent budget execution.  Progress has been made with the recapitalisation and consolidation of the cooperative credit sector, and banks are advancing with their restructuring plans. This has allowed for a significant liberalisation of domestic payment restrictions, in line with the government’s roadmap. The authorities have also taken steps toward implementing their ambitious structural reform agenda.”

May has been a good month for the Cyprus economy as the Bank of Cyprus announced the release of the blocked nine-month deposits (see relevant article) while international credit ratings, S&P and Fitch, both upgraded the Cyprus economy (see relevant article), the first upgrade the Cyprus economy had received in three years.