On 3 July the European Stability Mechanism (ESM) and the International Monetary Fund (IMF) approved the disbursement of the latest tranches (€100 million and €280 million respectively) of financial assistance to Cyprus under the package agreed in 2013.

Both organisations expressed their satisfaction with the implementation of the economic adjustment programme, and the ESM Managing Director said that, “The legal framework for a new foreclosure procedure has entered into force, and there has also been a substantial reform of corporate and personal insolvency laws. These new regulations enable the country to effectively deal with the problem of non-performing loans (NPL). I trust that the government will continue its reform efforts so that Cyprus can sustain economic recovery.”

According to the IMF the Cyprus economy grew at an annual rate of 0.2 per cent in the first three months of 2015 after shrinking 2.3 per cent in 2014.