IMF “salutes” Cyprus economic recovery, early loan repayment

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The International Monetary Fund (IMF) has saluted the recovery of the Cyprus economy and the “wise” macroeconomic policies followed, in comments made by the IMF representative to Cyprus, Vincenzo Guzzo.

Guzzo was responding on behalf of the IMF to the announcement made by Finance Minister Harris Georgiades that Cyprus will consult with the IMF and European Stability Mechanism to repay early part of its IMF loans.

“We salute the strengthening of the Cyprus economic recovery, and the wise macroeconomic policies more broadly, as they are reflected in the good conditions of the finance market, which have allowed for Cyprus to make this step,” Guzzo told the Cyprus News Agency.

On Thursday, the Finance Minister said that a significant part of the loans secured from the IMF have a higher borrowing cost than what can be secured at the moment in international markets.

According to Georgiades, there is a difference of about 0.5%, so it makes financial sense for an early repayment of IMF loans, so that they may be replaced by cheaper alternative.

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