Filenews 6 March 2021
The Minister of Finance welcomes the maintenance of the credit rating of the Republic of Cyprus in the investment grade ("BBB-") and the confirmation of its stable outlook by the international Credit Rating Agency Standard & Poor's.
Read the announcement as such:
In a statement issued on Friday 5 March 2021, the International Standard & Poor's Credit Rating Agency maintains the credit rating of the Republic of Cyprus in the investment grade ("BBB-") and confirms its stable outlook.
Standard & Poor's justifies its decision to confirm the Republic's credit rating on the basis of prudent government debt management policy, the State's strong cash reserves, which significantly reduce short-term refinancing risk and continued pan-European fiscal and monetary support.
In addition, the House notes that the stable outlook reflects its view that the risks associated with the credit rating are generally balanced, despite the contraction in economic activity caused by the pandemic, with the benefits of grants under the Resilience and Recovery Mechanism as well as the further improvement of the debt repayment schedule.
In the same context, Standard & Poor's stresses as the most important factors for the future upgrading of the Republic's credit rating, a return to strong economic growth rates, which is of major importance for the substantial reduction of high public debt and at the same time further progress in the reduction of non-performing loans, following the increase projected in 2021.
The House stresses that the Cypriot economy will see a strong pace of economic growth in the second half of 2021 supported by a gradual improvement in the pandemic due to vaccination and the achievement of one of the highest rates of control of crown disease. It also stresses that the Government's economic policy-pursuing officers are expected to remain focused on reducing weaknesses in the Cypriot economy, promoting sustainable economic growth and improving the financial sector.
The Government will continue to support economic activity so that, over the course of the pandemic, it can return to positive rates, both in terms of growth and employment (curbing unemployment) and in public finances. In order to achieve this objective, the Government supports the Cypriot economy and the community in a targeted and flexible manner while promoting appropriate economic plans that will allow the maximum possible use of the European programmes and funds offered.
Source: eyenews
