Troika assures Cypriot bailout program on track

FXstreet.com (Barcelona) - According to the findings of the Troika's first Cyprus bailout review, published on Wednesday, the country's reform program is on track but the outlook remains uncertain, as the labor market weakened more than projected.

"All the fiscal targets have been met as a result of significant fiscal consolidation measures underway and prudent budget execution," the EU, ECB and IMF officials assured in the report.

Nevertheless, they also pointed to the possible difficulties ahead. “Recent indicators support the program’s projections of a contraction in output of about 13 percent cumulatively during 2013-14,” the Troika said adding that “the labor market has weakened more than anticipated, and unemployment has continued to rise.”

At a press conference held after the release of the report, the IMF mission chief to Cyprus, Delia Velculescu, also told reporters that the government in Nicosia was fulfilling Troika's requirements, but that vigilance was necessary due to the uncertain prospects.

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