In Cyprus we focus on:
Strengthening the financial sector to build up resilience and improve governance
Supporting the authorities’ privatisation programme
Assisting corporate restructuring and providing finance to small and medium-sized enterprises
Founding EBRD member Cyprus received recipient country status in May 2014 following a decision by the Bank’s shareholders at the EBRD’s Annual Meeting in Warsaw.
The change in status was requested in February 2014 in a letter which sought EBRD support only for “as long as is strictly necessary to help Cyprus address its transition challenges”.
The Warsaw decision assumes that the EBRD will not engage in new operations in Cyprus after the end of 2020.
A country strategy was adopted on 6 May 2015. The document identifies the priorities for the EBRD’s engagement in Cyprus.
The EBRD will aim to carry out projects across the whole of the island for the benefit of either community.
The Cyprus economy has recovered from a deep recession which followed the boom period between 2004, when Cyprus joined the EU, and 2008, when it adopted the euro.
However, despite making important progress towards European integration, significant transition challenges and a number of key structural issues have not been addressed and non-performing loans represent a significant issue.
In particular, privatisation and modernisation of public utilities and infrastructure have largely stalled. Standards of governance and supervision in the banking sector need significant improvement.
The EBRD’s latest Cyprus strategy was adopted on 6 May 2015
Cyprus' policy response to the coronavirus crisis
The EBRD is monitoring Cyprus' policy response to the coronavirus pandemic. Our biweekly publication identifies the major channels of disruption as well as selected impact and response indicators.
EBRD forecast for Cyprus's real GDP growth in 2020 -6.0%
EBRD forecast for Cyprus's real GDP growth in 2021 5.0%
In 2019, GDP growth in Cyprus decelerated moderately but remained robust at 3.2 per cent. Investment, particularly in the construction sector, was one of the main drivers of growth. Private consumption also remained resilient throughout the year given the strong economic sentiment and
improving market conditions. Unemployment stood at 6 per cent in January 2020, seven percentage points below the 2014 peak.
Cyprus in the EBRD’s 2019-20 Transition Report