Brussels, 23/10/2014 (Agence Europe) - In a report on Thursday 23 October, the IMF flagged up the recent emergence of delays in the implementation of Cyprus's economic adjustment programme. Following the departure of the small party DIKO from governmental coalition, “the government lost its majority in parliament”. “Since then, political opposition to the programme has risen, signs of reform fatigue have emerged, and vested interests have been gaining traction”, the IMF notes in its fifth monitoring report, which was published on 23 October. The Washington-based institution refers to problems in adopting the legal framework designed to tackle the issue of toxic bank loans. Legislation on real estate repossessions has been adopted along with - and by initiative of the national parliament- a series of related laws which, the 'troika' argues, have an impact on the scope of the legislation itself. The Supreme Court is to rule on this issue later this month. The IMF explains that the ratio of toxic loans in the domestic banking system stood at 57% at the end of July. On the other hand, capital flight has been halted. Having fallen by 16% in the whole of the centre between March and December 2013, deposits fell by 1.4% in the first eight months of 2014. At macroeconomic level, according to the updated forecasts, the IMF predicts that Cyprus's GDP will drop by 3.2% this year, compared to the decrease of 4.2 % predicted at its last monitoring mission. (EL)