The Troika of international lenders are expected on the island today before they begin key discussions on Tuesday to see whether Cyprus is meeting its bailout obligations.
Although Nicosia passed its first review with flying colour this second evaluation – scheduled to last until November 8 – is expected to be tougher.
There will be questions asked about the controversial privatisation of key utilities such as telecoms and electricity while the government must show evidence it is ready to lance the bloated public sector.
A second review is expected to begin on Tuesday morning with Finance Minister Haris Georgiades and Central Bank governor Panicos Demetriades meeting with Troika technocrats at the Finance Ministry.
The Central Bank will update the Troika on the banking sector including deposits, loans, non-performing loans, profits and the capital adequacy of banks and co-operatives.
Officials are confident that the financial aspects of the adjustment programme are on track and therefore considered ‘unlikely’ that the evaluation will be negative.
But issues such as privatisation will remain sticking points.