• About Us
  • Our Services
  • Subscribe
  • Advertise
  • FAQ
  • Contact Us
Login | My Posts
Accountants in Cyprus
  • Publications
  • About Cyprus
    • Cyprus History
    • Cyprus Company Registration
    • Cyprus Tax
    • Cyprus VAT
    • Cyprus Accountants
    • Cyprus Economy
  • Find Accountants
  • Contact Us
No Result
View All Result
  • Publications
  • About Cyprus
    • Cyprus History
    • Cyprus Company Registration
    • Cyprus Tax
    • Cyprus VAT
    • Cyprus Accountants
    • Cyprus Economy
  • Find Accountants
  • Contact Us
No Result
View All Result
Accountants in Cyprus
No Result
View All Result
Home Publications News & Announcements

‘Cyprus will get back on its feet’

February 28, 2013
in News & Announcements
Reading Time: 2 mins read
THE International Monetary Fund (IMF) Executive Board has welcomed signs that the Cypriot economy is beginning to bottom out in 2010, leading to a modest recovery in 2011.

It also assessed that returning the economy to its potential growth depends critically on a credible fiscal consolidation, continued market confidence in the financial sector, and structural reforms to improve competitiveness and the business climate.

According to the IMF assessment, concluded on August 27, the near-term outlook is still fragile as global financial risks remain elevated and growth prospects in trading partners muted, while a positive inflation differential with the euro area has reopened.

Directors also agreed that the immediate policy challenge is to reverse the large structural fiscal deficit following the sizeable stimulus in 2009, with a view to preserving debt sustainability and creating fiscal space to guard against financial sector risks.

They welcomed the government’s commitment to reduce the deficit to below 3 per cent of GDP by 2012, consistent with its EU obligations.

Containing the wage bill and better targeting social transfers were seen as important elements, while more fundamental reforms of the pension system would also be needed to lessen the burden on public finances, through lower replacement rates and higher retirement age, the report said.

In light of the still large current account deficit, Directors stressed that structural reforms aimed at boosting competitiveness would be crucial for supporting the recovery and enhancing growth potential.

According to the assessment key priorities include restraining public sector wages and employment to free resources for the private sector, and phasing out the wage indexation system to allow wages to reflect productivity gains. Also, active labour market policies, aimed particularly at addressing skill mismatches, should help reduce unemployment.

Directors observed that the banking sector remains sound and retains a capacity to absorb further shocks, as suggested by stress test results, including those conducted in the context of the EU-wide exercise.

However, they noted that risks have risen significantly both in Cyprus and in the region and in light of the relatively large size and external exposure of Cyprus’ financial sector, these risks call for continued vigilance, close cooperation with foreign supervisors, and an enhanced framework for crisis management and contingency planning, including for cross-border banks.

Cyprus was placed under the Excessive Deficit Procedure of the EU on July 2010, prompting the government to adopt a programme of fiscal consolidation aimed at reducing the fiscal deficit to 4.5 percent of GDP in 2011 and below 3 percent in 2012.

Published on September 5, 2010, Cyprus Mail

ShareTweetShare

Newsletter

Latest News

luxury yacht hub
Videos

Cyprus has tremendous potential as a prime luxury yacht hub

June 2, 2023

Stavros Caramondanis, President of the Cyprus Marinas Association (CMA), talks about Cyprus’ potential to become a prime luxury yacht hub...

Read more
The European Union proposes a new regulation named Digital Operational Resilience Act, "DORA". The new Regulation aims to enhance the financial sector's operational resilience in the challenging digital age.

EU – Digital Operational Resilience Act (DORA)

June 1, 2023
2023 Cyprus company annual Levy Tax deadline

2023 Cyprus company annual Levy Tax deadline due end of June

May 23, 2023

Accountants in Cyprus is an accounting portal that consists of information in the field of finance and a network of Cyprus accounting firms and other financial service providers .

USEFUL LINKS

  • Accountants in Nicosia
  • Accountants in Limassol
  • Accountants in Larnaca
  • Accountants in Famagusta
  • Accountants in Paphos
  • Accountants in Nicosia
  • Accountants in Limassol
  • Accountants in Larnaca
  • Accountants in Famagusta
  • Accountants in Paphos

USEFUL LINKS

  • Cyprus Tax Consultants
  • Tax Planning Cyprus
  • Tax Benefits Cyprus
  • Double Taxation Treaties
  • Cyprus Accounting Firms
  • Cyprus Tax Consultants
  • Tax Planning Cyprus
  • Tax Benefits Cyprus
  • Double Taxation Treaties
  • Cyprus Accounting Firms

AFFILIATED SITES

logo-lawyers-in-cyprus
lawyers-malta
2022 © Accountants in Cyprus. All Rights Reserved. Developed by Wizzweb
  • About
  • Cyprus Accounting Services
  • Auditors in Cyprus
  • Cyprus VAT
  • Contact Us
No Result
View All Result
  • Publications
  • About Cyprus
    • Cyprus History
    • Cyprus Company Registration
    • Cyprus Tax
    • Accountants Cyprus
    • Cyprus Economy
  • Find Accountants
  • Contact Us
  • Our Services
  • Subscribe
  • Advertise
  • FAQ

© 2023 Accountant in Cyprus

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.