07/12/2021 10:05
Cyprus focuses on structural reforms through the Resilience and Recovery Mechanism in order to increase the country’s potential economic performance, Finance Minister Constantinos Petrides said during Monday’s Eurogroup meeting in Brussels, according to a press release.
Petrides was speaking during the discussion following a presentation by the European Commission and the European Central Bank (ECB) on the main findings of the post-programme surveillance reports on Cyprus, Portugal, Ireland and Spain.
Referring in particular to the findings of the 11th Post-Programme Surveillance Report for Cyprus, Petrides said that the reflect the progress that has been achieved as well as prospects and challenges for the Cypriot economy.
The Finance Minister added that the main aim of Cypriot financial policy is to ensure macroeconomic stability in order to facilitate development and job creation.
When economic conditions allow, he stressed, Cyprus intends to maintain a fiscal policy geared towards a positive primary surplus, in order to facilitate the rapid reduction of public debt.
Petrides also noted that the measures taken to counteract the effects of the pandemic paid off, resulting in a recovery of economic activity that overcompensates for the 2020 recession, and pointed out that the country’s GDP is projected for an increase larger than 5.5%.
The Finance Minister also referred to projections showing a reduction of the public debt during 2021, from 115.3% of GDP in 2020 to 104.2% of GDP in 2021, as well as a further reduction in 2022 to 97.5%.
Regarding the banking sector, Petrides said that the coordinated efforts of all involved has brought important progress, and noted that in the last few years, non-performing loans were reduced by more than 100% of the GDP.
Petrides is later expected to take part in an informal dinner hosted by the President of the Eurogroup, where the ministers will discuss the banking union and the preparation of the December Euro Summit.
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