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The authorities and EC/ECB/IMF teams made good progress towards agreement on key policies to strengthen public finances, restore the health of the financial system, and strengthen competitiveness, so as to pave the way for the economy to return to sustained growth and financial stability. Discussions are expected to continue from respective headquarters with a view to making further progress towards a potential programme.
The preliminary results of a bank due-diligence exercise, expected in the next few weeks, will inform discussions between official lenders and Cyprus on financing solutions consistent with debt sustainability.
VP Rehn said: "I welcome the decisive progress that has been made in the discussions between the European Commission, European Central Bank, International Monetary Fund and the Cypriot authorities on the key policies needed to strengthen public finances, restore the health of the financial system, and strengthen competiveness. I consider this as an important step towards full agreement on an assistance programme for Cyprus which can be finalised once the interim results of the due-diligence exercise are known, and after agreement by the Eurogroup. The interim results of the due-diligence exercise are expected in a few weeks."
Statement © European Commission
Eurogroup president Juncker said: "I welcome the productive exchanges held in recent weeks between the troika and the authorities in Nicosia, as well as the good progress towards agreement on the building blocks of a macro-economic adjustment programme.
The Eurogroup will discuss the mission results at its meeting on 3 December. I look forward to the finalisation of negotiations, with agreement on a draft Memorandum of Understanding. I am convinced that this will facilitate the return of the Cypriot economy – which needs a comprehensive adjustment – to a path of sustainable growth and to fiscal and financial stability.
I very much welcome these developments, which are in the interest of Cyprus and the euro area as a whole."