The Bank was responding to a request from the Cypriot authorities who said that a temporary engagement by the EBRD would "represent a positive contribution to efforts to reform and restructure the
The agreement on the temporary change in
The EBRD's activities in
EBRD projects will aim to strengthen the financial sector, making it more robust to future shocks and improving its governance.
The Bank will also support the authorities' privatisation programme and it will assist in corporate restructuring while also providing finance to small and medium-sized enterprises, in support of the objectives of the Troika programme.
The Bank's operations will complement those of other international organisations and international financial institutions active on the island.
The EBRD intends to establish a local office in
The Cypriot economy remains mired in a deep recession that emerged after a boom period between 2004, when
Despite making important progress towards European integration, significant transition challenges and a number of key structural issues have not been addressed.
In particular, privatisation and modernisation of public utilities and infrastructure have largely stalled. Standards of governance and supervision in the banking sector need significant improvement.
Although performing well under the Troika programme, the short-term macroeconomic outlook for
TNS 30FurigayJane-140515-4737321 30FurigayJane
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