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South gets 600 million euro shot in the arm

8 July 2014

South Cyprus is to receive an injection of 600 million euros. A move which was approved on Monday by the Board of Directors of the European Stability Mechanism (ESM), ‘Famagusta Gazette’ reports.

This cash boost comes after a positive assessment of the fourth quarterly review of the South’s macroeconomic adjustment programme and approval of the supplemental Memorandum of Understanding (MoU) with Cyprus by the ESM Board of Governors.

“Cyprus continues to make good progress in many fields, most notably in achieving fiscal targets and steadily moving out of recession. The successful completion of the review shows that the Cypriot authorities are strongly committed to the programme.

Further efforts are necessary to successfully deal with remaining challenges, such as the removal of capital controls, reducing non-performing loans, generating sustained economic growth and reducing the level of unemployment”, said ESM Managing Director Klaus Regling.

The current disbursement will bring the total amount of ESM financial assistance for the South up to 5.35 billion euro. The remaining portion of the approximately 9 billion euro committed to Cyprus by the ESM is scheduled to be paid in quarterly disbursements until 2016.

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