MONDAY, 18 JUN 2018

 

CONNECT

Facebook Linked In Twitter
MTN_07/07-10/04_728x90px
GloriaJeans_266x90px
IMH LTD

Georgiades: European Fiscal Framework Rules Need to be Simplified

Snapbox Holdings: Cyprus Has a Potential of Becoming a Key Investment Destination

IMH LTD
MTN_07/07-10/04_468x60px

ECONOMY

S&P Upgrades Cyprus to BB+ With a Stable Outlook

S&P Upgrades Cyprus to BB+ With a Stable Outlook

Standard & Poor`s upgraded its assessment of Cyprus on Friday to `BB+` from `BB`, with a stable outlook.

 

At the same time, it affirmed its `B` foreign and local currency short-term sovereign credit ratings, Cyprus News Agency reports.

 

S&P said that it expected the Cypriot economy will expand by about 2.7% this year and maintain average annual growth at just under 2.5% between 2018-2020.

 

“We think that the sovereign`s budgetary position will on average show a small surplus over 2018-2020, driving a discernible decline in government debt” it said.

 

“We are therefore raising our long-term sovereign credit ratings on Cyprus to `BB+` from `BB` and affirming our `B` short-term rating. The stable outlook balances our view of Cyprus` fiscal and economic progress against unusually high levels of nonperforming loans in its financial sector, alongside risks of weaker reform delivery ahead of next year`s presidential elections” the rating agency noted.

 

It explained that the upgrade reflected its views of Cyprus` stronger-than-expected economic growth and fiscal progress. “Under our projections, general government debt will continue to decline even as the private sector deleverages. We estimate that net general government debt will drop to below 90% of GDP by the end of 2018 versus slightly under 100% of GDP at end-2015” it said.

 

S&P estimates that after expanding 2.8% last year, Cyprus` economy will continue to post solid GDP growth of between 2.0% and 3.0% over its forecast horizon and that the unemployment rate, 13.3% at year-end 2016, will fall below 12.0% by 2018.

 

In the light of Cyprus` strong economic performance and previous budgetary consolidation efforts, the rating agency estimates the government`s budgetary position to have ended in a small surplus (0.1% of GDP) in 2016, outperforming its own target by 0.4 percentage points.

 

“Instead, we anticipate the government`s budgetary position will continue strengthening thanks to a gradual reduction in unemployment benefits and an increase in cyclical revenue items amid the economic recovery. The upcoming 2018 elections could, in our view, prompt a loosening of the fiscal stance toward the end of 2017. Still, we do not expect any pronounced negative deviation from the budget balance and see a rise of the budget surplus over the forecast horizon” S&P said.

 

It noted that the stable outlook balances its view of the upside rating potential due to improvement in economic and budgetary performance and reduction of currently high levels of NPLs against the risk of weaker growth, risks to banking sector stability and budgetary policy deviation.

MORE ON ECONOMY

Employment in Cyprus up by 4% In the First Quarter Of 2018

Total employed persons in Cyprus amounted to 391,701 in the period of January – ...

Eurostat: Employment in Cyprus Rises by 0.8%

The number of persons employed increased by 0.4% in both the euro area (EA19) and the ...

NPLs Decline Slightly Below €22 Billion in February

Non- performing exposures (NPEs) in the Cypriot banking system declined below €22 ...

FROM AROUND GOLDNEWS

   

ECB to End Stimulus Programme in December

The European Central Bank (ECB) has confirmed it will end a huge programme to stimulate the eurozone economy in December. The ECB will stop its bond-buying ...
   

Fear in the Workplace: How Much is it Costing you?

Fear is good: it keeps us alive and safe; and in the workplace, it can spur us on to achieve. But left unchecked, it can significantly impact our abilities, ...
   

Snapbox Holdings: Cyprus Has a Potential of Becoming a Key Investment Destination

Looking at the current investment climate in Cyprus, it is clear that foreign investments constitute one of the most important factors in Cyprus’ ...
   

Georgiades: European Fiscal Framework Rules Need to be Simplified

Finance Minister Harris Georgiades has expressed the view that the rules of the European fiscal framework ought to undergo a reform and become more simplified, ...
   

Three ISO Certifications for VTS Vasiliko Terminal Services

VTS Vasiliko Terminal Services (VTS), a leading marine services provider at Cyprus’ ports and terminals, and member of the Limassol-based RPT Group, has ...
   

Royal Academy of Dramatic Art Trains CFA

Members of CFA Society Cyprus had the opportunity to follow professional presentation, executive presence and story-telling seminars by professional trainers ...
   

Oracle and PwC to Support Finance Transformation for Insurers and Provide IFRS 17 Compliance Expertise

Oracle Financial Services Analytical Applications (OFSAA) and PwC, an Oracle PartnerNetwork (OPN) Platinum and Cloud Elite partner, announced today a global ...
   

Petrolina: Grand Sponsor of Charity Concert by the Association of Friends of Agia Skepi

Cypriot petroleum company PETROLINA was once again the grand sponsor of the annual charity concert organised by the Association of Friends of Agia Skepi in ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Belluga_29/05-15/08_300x250px
GloriaJeans_300x250px

IMH LTD