NICOSIA - A multi-member Troika delegation began meetings on Tuesday in the context of the second review of the Cypriot adjustment programme.
The review kicked off with a meeting between the heads of the Troika mission (European Commission, European Central Bank and the IMF) and the Cyprus Minister of Finance Harris Georgiades, the Central Bank Governor Panicos Demetriades and the Minister of Communications and Works Tasos Mitsopoulos.
The mission, which will remain in Cyprus until November 7, will examine the progress made in the implementation of the programme concerning the financial sector, the fiscal sector as well as the reforms stipulated in the memorandum of understanding containing the conditions of the €10 billion bailout.
According to a reliable source, participants to the meeting expressed hope that the outcome of the second review will be equally positive as the first, which took place at mid-June.
The meeting covered all issues to be examined such as the reforms in the public sector and the financial system, the state budget for 2014, Bank of Cyprus, Non-performing loans in the banking sector as well the progress in the restructuring of the Cooperative Credit Institutions, that received a €1.5 capital injection from the bailout.
On March 25 Cyprus and the Troika agreed on a €10 billion bailout which featured an unprecedented haircut on uninsured deposits in a bid to recapitalize Bank of Cyprus, the island`s largest lender. The bailout also provided that Cyprus Popular Bank, the island`s second largest bank would be wound down with its good part absorbed by Bank of Cyprus.