ESM Managing Director Klaus Regling said he was pleased that Cyprus’ adjustment programme “is back on track.”

“The legal framework for a new foreclosure procedure has entered into force, and there has been a substantial reform of corporate and personal insolvency laws. These new regulations enable the country to effectively deal with the problem of non-performing loans. I trust that the government will continue its reform efforts so that Cyprus can sustain economic recovery,” he said.

According to Regling, progress in Cyprus confirms, “with strong ownership by a government our approach to grant a loan in exchange for economic policy conditions works”.

This has also been demonstrated by the successful programme conclusions in Ireland, Portugal and Spain, he added.

The current disbursement will bring the total amount of ESM financial assistance to Cyprus to €5.8 billion out of the €9 billion available under the approved programme.

Source: Cyprus Mail