IMF Urges Cyprus to Maintain Foreclosure Framework

The International Monetary Fund (IMF) is urging Cyprus to maintain the resilience of its banking sector and avoid changes to the foreclosure framework.

In a statement following the completion of its mission to Cyprus (April 22 - May 4), the IMF warned that changes to the foreclosure framework could slow debt resolution and limit access to financing.

The IMF noted that the banking system remains strong due to the reduction of non-performing loans, but risks remain, particularly outside the banking sector. It called for intensified efforts to address accumulated debt.

More broadly, it was acknowledged that Cyprus has demonstrated strong economic performance with high growth rates and a reduction in public debt to below 60% of GDP.