Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

CYPRUS’ CREDIT WORTHINESS CHANGED TO POSITIVE BY MOODY’S

Moody’s ratings agency changed Cyprus’ Caa3 government bond rating from negative to positive, following to the island’s economic performances in 2013, which were way better than expected, and the authorities’ accomplishment of meeting actions under the Troika funding program.

Cyprus received a Caa3 rating given the still existing risk of Cyprus defaulting on its debt.

The Cypriot economy decreased by 5.4% in constant prices in 2013 (6.9% in current prices), exceeding all estimates.

CYPRUS’ CREDIT WORTHINESS CHANGED TO POSITIVE BY MOODY’S 1This, together with the implementation of fiscal-consolidation measures, is expected to have reduced the general government deficit to 5.4% of GDP in 2013 from 6.4% in 2012. Further the primary deficit has dropped to an estimated 2.1% of GDP in 2013, from 3.3% in 2012.

It appears to Moody’s that the measures implemented in 2013 should have permanent positive fiscal effects, including revenue measures, measures to reduce the wage bill through freezing the Cost of Living Adjustment as well as reducing the size of the public sector workforce.

Moody’s highlights that; the government continues to meet the program’s conditions, especially the strengthening of the financial sector’s supervisory and regulatory framework.

The government also recently approved the privatization of utilities companies, and has continued to relax the capital control measures.

Further, Moody’s has raised the local and foreign-currency bond rating of Cyprus to Caa1 from Caa2, reflecting first of all a lower possibility of exit from the euro area and secondly the relaxation of capital control measures as well as the possibility for depositors to use their deposits for debt repayment.

The local and foreign currency deposit ceilings remain unchanged at Caa2 as the withdrawal of deposits is still in place.