The first quarterly review of the Cyprus economy was carried out by Troika during the second half of July 2013 with the comments being very positive and promising for the future according to the statement issued.
In more detail and according to the statement:
- The Program relating to Cyprus is on track
- All the fiscal targets have been met
- Decisive steps have been taken by the Government and Authorities to stabilize the financial sector
- Deposit restrictions and capital controls have been gradually relaxed
- Short-term outlook remains difficult and risk remains substantial but growth is expected to recover from 2015 onwards
- Financial sector policies have been geared toward restoring confidence in the bankingsystem, including the full recapitalisation of Bank of Cyprus (see below) and the set up of a clear agenda to restructure and recapitalize other financial institutions without involving depositors (this refers mainly to the Cooperative Credit institutions) but by using funds from the Program
- The primary fiscal deficit in the first half of the year was better than the program target for the same period
- Major structural reforms are being designed to modernize fiscal institutions
You can read the whole statement in the follwing link:
Bank of Cyprus
Another important development is that Bank of Cyprus has been fully recapitalised and exited the status of administration with the conversion of 47,5% of the uninsured deposits into ordinary shares of the bank and with the release of 12% of the previously blocked deposits. Furthermore, the rest of the uninsured deposits will be split into three equal fixed term deposits of six, nine and twelve months which will earn interest above market rates but Bank of Cyprus will have the option to renew these deposits once for an equal period of time as the intitial deposit.