Brussels, 11/03/2014 (Agence Europe) - On Monday 10 March, eurozone finance ministers welcomed the latest batch of good results from the Cypriot structural adjustment programme.
Introduction of the final “prior action” last week (a privatisation law) meant that the ministers were able to agree to the disbursement of €150 million in aid from the European Stability Mechanism (ESM), to be paid out early next month. In the meantime, the national parliaments that have to endorse the payment will have time to do so, and the IMF is expected to provide €86 million for Cyprus.
The head of Eurogroup, Jeroen Dijsselbloem, said he was aware of the difficult situation facing people in Cyprus because economic prospects are gloomy and budget belt-tightening is required, along with greater efforts to create a sustainable economy. The ministers welcomed the way Cyprus has now entered the second phase in the process of lifting the restrictions on capital. At an event organised by the Bruegel think tank in Brussels on Monday, Cypriot finance minister Harris Georgiades said that the remaining capital restrictions on the island itself would be removed later this month, before the third phase begins (lifting restrictions on international transactions).
The president of Cyprus, Nicos Anastasiades, accepted the resignation on Monday of the governor of the central bank, Panicos Demetriades, for personal and family reasons, along with difficult cooperation with the Cypriot central bank's board. Anastasiades often criticised Demetriades in public, for which he in turn was criticised by the European Central Bank. On Monday evening, the ECB simply took note of Demetriades' resignation without further comment. (EL)