The Minister of Finance is satisfied with the maintenance of the creditworthiness of the Republic of Cyprus in the investment grade (“BBB-“) and the confirmation of its stable outlook by the international Credit Rating Standard & Poor's.
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With its announcement issued on Friday, March 5, 2021, the international Credit Rating House Standard & Poor's, maintains the creditworthiness 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 public debt management policy, strong government cash flows that significantly reduce the risk of short-term refinancing and .
In addition, the House notes that the stable outlook reflects the view that the risks associated with credit rating are generally balanced, despite the contraction in economic activity caused by the pandemic, with the benefits of framework of the Resilience and Recovery Mechanism as well as the further improvement of the debt repayment schedule.
In the same context, Standard & Poor's emphasizes as the most important factors for the future upgrade of the credit rating of the Republic, the return to strong economic growth rates, which is crucial for the substantial reduction of high public debt and at the same time further progress. to reduce non-performing loans, following the increase projected in 2021.
The House emphasizes that the Cypriot economy will record a strong rate of economic growth in the second half of 2021 supported by the gradual improvement of the pandemic due to vaccination and the achievement of one of the highest rates of coronary heart disease control. He also stressed that those pursuing the Government's economic policy are expected to remain focused on reducing the weaknesses of 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 (holding back unemployment) and public finances. To achieve this goal, the Government supports the Cypriot economy and society as a whole, in a targeted and flexible way and, at the same time, promoting appropriate economic plans that will allow the maximum possible utilization of the offered European programs and funds.