MONDAY, 11 DEC 2017

 

CONNECT

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

Syllouris: We Deplore the Violations of Human Rights

Anastasiades and Tsipras to Discuss Erdogan’s Visit to Greece

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

Cyprus GDP 0.9% Increase on Quarterly and 3.9% on Annual Basis in Q3 2017

Seasonally adjusted GDP raised by 0.6% in both the euro area (EA19) and the EU28 during ...

Completion of Voluntary Early Exit Scheme

Hellenic Bank Public Company Limited (the Bank) announces the successful completion of a ...

Ioannou Urges Borrowers to Restructure Their NPLs As Soon As Possible

Financial Ombudsman of the Republic of Cyprus Pavlos Ioannou urged all borrowers that ...

FROM AROUND GOLDNEWS

   

Nokia COO to Leave the Company

Telecom network equipment maker Nokia said on Monday its Chief Operating Officer Monika Maurer was leaving the company, Reuters reports. Joerg Erlemeier, ...
   

Apple to Buy Shazam for $400M

Apple is close to buying the music recognition app Shazam for about $400m (£300m), media reports say. Shazam, a UK company founded in 1999, allows ...
   

Building Permits Increase by 45% in 2017

During the period January – September 2017, 4,281 building permits were issued compared to 3,901 in the corresponding period of the previous year, ...
   

Anastasiades and Tsipras to Discuss Erdogan’s Visit to Greece

President of the Republic of Cyprus Nicos Anastasiades will be briefed in detail by Greek Prime Minister Alexis Tsipras about Turkish President Recep Tayyip ...
   

Syllouris: We Deplore the Violations of Human Rights

The House of Representatives deplores the violations of human rights, wherever they are taking place, especially in Cyprus by Turkey, and declares its ...
   

Companies in Cyprus Using High Speed Internet Connections Increase in 2017

The number of enterprises in Cyprus using high speed internet connections increased in 2017, according to study published on Thursday by the Statistical ...
   

Cyprus and Egypt to Sign Memorandum on Aeronautical Search and Rescue

Cyprus and Egypt will sign a Memorandum of Cooperation on Aeronautical Search and Rescue. According to a press release issued by the Public Information ...
   

Amazon Expands its Echo Smart Speakers and Music Unlimited Service to 28 New Countries

Have you been envious of your friends in other countries who tell you about their Amazon Echo device or their Music Unlimited streaming service, neither of ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
Gold_Issue_300x250px

IMH LTD