Creditors: Cyprus on road to recovery, reforms essential

Staff Writer
Columbus CEO

ATHENS, Greece (AP) — Cyprus' creditors say the bailed-out country is on the path to economic recovery after years of recession but that it needs to follow through on structural reforms to lock in progress made and keep growth on an upward trajectory.

The European Union and the International Monetary Fund said Monday the fiscal targets for the first half of 2015 have been comfortably met and that Cyprus' debt appears to be stabilizing.

And concluding their latest review of Cyprus' March, 2013 rescue deal, the creditors said still-high unemployment is starting to fall.

But they said Cyprus needs to stick to reforms to reduce the huge level of bad loans, such as enacting new laws to ease the sale of loans.

The creditors also said the government needs to keep spending in check.