Spokesman stresses Cyprus' commitment to responsible economics after IMF report

Government Spokesman, Konstantinos Letymbiotis, has reaffirmed Cyprus' commitment to responsible economic policies, stressing their pivotal role in the country's economic growth and prosperity.

During a media briefing on 30 May, he welcomed the latest observations and recommendations released by the International Monetary Fund (IMF) regarding Cyprus.

Letymbiotis commented on IMF’s Executive Board’s conclusions following its latest Article IV consultation with the country. He noted that, according to the IMF, Cyprus has swiftly rebounded from the pandemic and has proven resilient against various adverse shocks.

"We welcome both the observations and recommendations of both the staff and the Executive Directors of the IMF," Letymbiotis said.

He highlighted the IMF's recognition of Cyprus' remarkable resilience despite adversities and the country’s dynamic macroeconomic and fiscal metrics. Letymbiotis emphasized that the fiscal policy aims to reduce debt while maintaining primary surpluses until public debt falls below 60% of GDP.

Regarding structural reforms, Letymbiotis added, that IMF’s view for further reforms aligns with the key priorities of the governance program, noting the need for reforms that will significantly contribute to the modernization of the state and the fortification of the economy.

Letymbiotis pointed out that the IMF announcement on May 29 comes immediately after Moody's recent assessment on May 25, which upgraded Cyprus' economic outlook from stable to positive. He also referenced the spring forecasts of the European Commission, which ranked Cyprus among the top three countries in the eurozone with the highest growth rate in 2024.

"These figures are the result of the prudent, serious, and responsible economic policy followed and implemented by the Government," he said.

"It is this economic policy that we will continue to implement and follow, and it is precisely this economic policy that allows us to exercise effective social policy, strengthen key sectors and infrastructure in health, education, security, and be able to face crises due to geopolitical developments," he said.

When asked by a journalist if this means that further measures against inflation are forthcoming, Letymbiotis said, that the Government, in line with the fiscal data, will evaluate any additional or different measures.

The Spokesman concluded by emphasizing the significance of the government's "responsible and prudent" fiscal policy, underscoring its role in cultivating a positive image for the country and transforming it into an appealing investment destination.

(Source: CNA)