KPMG CY | KPMG | CY

Paving the Way for Cyprus’ Inclusion in ECB QE

Paving the Way for Cyprus’ Inclusion in ECB QE

Paving the Way for Cyprus’ Inclusion in European Central Bank’s quantitative easing programme

1000

Board Member

KPMG in Cyprus

Contact

Related content

bank

Paving the Way for Cyprus’ Inclusion in ECB QE

Although Cyprus is currently excluded from the European Central Bank’s quantitative easing (QE) programme – an initiative set to see the
ECB purchase some €1.14 trillion in European public sector bonds – necessary measures are being taken to ensure that Cyprus’ may benefit from this development.

“Despite Cyprus’ exclusion, the conditions for the completion of the fifth
review are in place, following the submission of the fifth law of the insolvency
framework, something which would pave the way for the ECB to purchase Cypriot bonds from the secondary markets,” he told local media sources.

Indeed, the fifth and final bill of an insolvency framework was approved by the
Council of Ministers on Friday, March 6. Should the House of Representatives
offer their final approval of the bill and completed framework, the full
implementation of Cyprus’ foreclosures legislation is expected to follow. This
would secure Cyprus’ fulfillment of a key stipulation of its economic adjustment programme requirements and lead to the completion of its fifth review.

“A possible positive reaction by rating agencies after the completion of the fifth review is expected to lead to a further reduction of Cyprus’ borrowing costs, assisting the country’s bid to tap into the markets,” Yiasemides continued.

The board director noted, however, that despite the country’s best efforts,
ongoing fiscal and Governmental developments in regards to Greece’s economic adjustment programme could affect the entire euro area, including Cyprus.

“Although no decision is expected on the disbursement of any tranche to Greece, a possible agreement on a road map and a time frame on reforms that would secure the refinancing of Greece would affect markets positively,” he said.

KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative ("KPMG International") a Swiss entity. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG International Cooperative ("KPMG International") or KPMG member firms.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.

 
Read more