Cyprus economy forecast to begin recovery in 2015

AP News
Posted: Jun 23, 2015 10:31 AM

NICOSIA, Cyprus (AP) — The International Monetary Fund is projecting that bailed-out Cyprus' economy will grow by a modest 0.2 percent this year after contracting for three years.

The IMF said in its latest review of Cyprus' bailout program Tuesday that more business from other European Union countries will offset weaker demand from crisis-ridden Greece and Russia.

It said swift implementation of new foreclosure laws to reduce the number of bad loans remains "an urgent priority" for Cyprus. Some 59 percent of all loans were sour at the end of 2014.

The IMF said protracted turmoil related to Greece and a deeper Russian recession could impact the Mediterranean island state. It urged Cypriot authorities to stick to reforms despite political opposition that could intensify ahead of next year's parliamentary elections.