The government will continue its targeted interventions to successfully deal with the current economic crisis | Stockwatch

The government will continue to provide solutions with targeted interventions in order to successfully deal with one more crisis, government spokesman Marios Pelekanos said on Thursday, referring to the current economic crisis and the press release issued on Wednesday. by the International Monetary Fund.

According to the presidency, in statements to the press, the government spokesperson referred to the International Monetary Fund press release on Cyprus and said that the IMF notes that Cyprus has recorded a strong recovery last year thanks to the successful management of the pandemic, while GDP returned to pre-pandemic levels and unemployment fell further.

The IMF, he said, also notes the reduction in public debt to 104% at the end of 2021, the high liquidity of the banking sector and the stability of capital ratios, as well as the progress that has been made regarding the non-performing. loans.

“Despite the challenges faced by economies around the world, including our economy, due to rising inflation, following the war in Ukraine, it is expected that Cyprus will record positive growth rates of 2 % this year, maintaining the still positive rate of growth that has been recorded in recent years,” the spokesperson stressed.

Pelekanos noted that the IMF also warns that to achieve a positive growth rate for 2022, the effort must be supported by investment spending included in the “Cyprus – Tomorrow” plan, which, in combination with structural reforms, improves medium-term growth prospects. , which will require constructive cooperation between the executive and legislative powers and the social partners.

In addition, he said that the IMF welcomed the progress made in the implementation of the recovery and resilience plan, including the adoption of legislation on corruption and on civil service reforms and of local authorities, while noting that reforms of the judicial system are also a priority.

The spokesman said that the IMF warns of the problems that Cyprus is called upon to face due to the uncertainty and danger created by a possible escalation and prolonged duration of the war and sanctions, the inflation and possible new, uncontrollable outbreaks of COVID-19.

“The government will continue to take IMF reports and recommendations seriously, such as the need to address the challenges of implementing the green agenda, including the planned green tax reform, a need that was one of the priorities of the government when preparing the National Plan ‘Cyprus – Tomorrow'”, noted Pelekanos.

In conclusion, he said that the government will continue until the last day of its mandate to govern by providing solutions with targeted interventions, to face this crisis with the same success as the previous crises of 2013 and the pandemic, without jeopardizing the regular course of the crisis. countries in order to achieve political gains.

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