Cypriot economic sentiment indicators rise further in April

April 30, 2015 6:47 am 

NICOSIA, April 29 — Cypriot businessmen interviewed in a survey said they were more confident in April about the prospects of the Cypriot economy relative to the previous month, a report by the Economic Research Center of the University of Cyprus said on Wednesday.

The report, which is being funded by the European Union, said the Economic Indicator for April rose by 4 points from March to 107.7 points reflecting an improvement in business climate in all sectors covered by the survey.

Cyprus was saved from bankruptcy in March 2013 in a 10-billion- euro bailout by the Eurogroup and the International Monetary Fund which also involved the resolution and restructuring of the banking system.

The study said there was a marked improvement in both business and consumer economic sentiment.

"In the sector of business the improvement of the climate is related to the more favorable surveys of the economic situation and the turnover of businesses in the last three months," the report said.

It added that improvement was recorded in all sectors of the economy, but the retail commerce, construction and manufacturing sectors were still in the red, despite showing better results.

It also said that the improvement of consumer assessment of economic prospects comes from less severe projections for the economy for the next 12 months, their expectations about a drop in unemployment and a less negative viewing of savings.

Unemployment is the most vexing problem facing Cyprus two years after the reshaping of its economy.

But the eastern Mediterranean island was able to raise 1 billion euros from international markets on Tuesday in its second such move since it was shut out from the markets in 2011.

Finance Minister Harris Georgiades said on Wednesday that the return to the markets was a milestone in Cyprus's drive to end its adjustment program which comes to an end in 10 months.

But he said that this will be done through the diligent application of its adjustment program, clearly distancing Cyprus' options from those of Greece.

Teams of troika technocrats representing the European Commission, the European Central Bank and the IMF are expected to complete a survey on Thursday of Cyprus' progress in applying its adjustment package.

Georgiades said he was optimistic that Cyprus will get a positive report, opening the way for the purchase of sovereign debt by the European Central Bank under its quantitative easing program worth 500 million euros (USD 550 million). (PNA/Xinhua)

RMA/RSM

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