Insider Business Government: Moody’s upgrade important for Cyprus economy and its prospect

Government: Moody’s upgrade important for Cyprus economy and its prospect

Government Spokesman Prodromos Prodromou said on Saturday that upgrades of the economy by international rating agencies are always important for the Cypriot economy and its prospects.

He was commenting on Moody’s upgrade of Cyprus rating to Ba2 from Ba3 on Friday.

The positive ratings, as he said “encourage investment activity in our country and the financing terms are improved in case external borrowing is needed.”

He further noted that Moody’s upgrade of Cyprus’ long-term issuer rating to Ba2 from Ba3, reflects the ongoing recovery of Cyprus’  banking system and the positive fundamental trend with respect to the government`s balance sheet.

He added that Moody’s expects that despite the one-off costs of the Cyprus Co-operative Bank transaction, the general government debt to GDP ratio would fall below 90% by the end of 2021, while confirming the prediction that Cyprus economy will continue to grow in the years to come.

Prodromou also mentioned that Moody’s notes that “Cyprus has taken an important step forward in the recovery of its banking sector in recent months” and points out the fall by about 1/3 of the bad loans.

“At the same time, however, we also note that the next assessments and the expected further upgrading will depend both on continued prudent fiscal management and on political actions,” Prodromou noted.

Finally he said that future positive ratings would come with the further reduction of non-performing loans in the system and the Government`s planned reduction of public debt.

Read more

Top Stories

Economic sentiment in Cyprus drops in October

Economic sentiment has decreased in October, according to a monthly indicator by the University of Cyprus' Economic Research Centre released on Tuesday. It went down...

Warning over high concentration of dust in the air

High concentration of dust is observed in the air on Tuesday, according to measurements from ground Stations of the Air Quality Monitoring Network operated...

Greek navy vessel, container ship collide off Piraeus port

A Portuguese-flagged container vessel collided with a Greek navy minehunter off the Greek port of Piraeus early on Tuesday, authorities said. TV images showed the...

Supporting or opposing Amy C. Barrett for the Supreme Court

An activist supporting the nomination of Amy Coney Barrett to the Supreme Court prays as counter protesters stand at the Supreme Court in Washington,...

Tonnes of carob stolen from Limassol Co-op carob warehouse

A total of 35 tonnes of carob were stolen from the Limassol Co-op carob warehouse, Philenews reported on Tuesday. Police also said the theft was...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...