Contains sensitive information, not for further distribution DRP

Contains sensitive information, not for further distribution DRP
1
Memorandum of Understanding on Specific
Economic Policy Conditionality
The economic adjustment programme will address short- and medium-term financial, fiscal
and structural challenges facing Cyprus. The key programme objectives are:
 to restore the soundness of the Cypriot banking sector by thoroughly restructuring,
resolving and downsizing financial institutions, strengthening of supervision,
addressing expected capital shortfall and improving liquidity management;
 to continue the on-going process of fiscal consolidation in order to correct the
excessive general government deficit, in particular through measures to reduce
current primary expenditure, and maintain fiscal consolidation in the medium-term, in
particular through measures to increase the efficiency of public spending within a
medium-term budgetary framework, enhance revenue collection and improve the
functioning of the public sector; and
 to implement structural reforms to support competitiveness and sustainable and
balanced growth, allowing for the unwinding of macroeconomic imbalances, in
particular by reforming the wage indexation system and removing obstacles to the
smooth functioning of services markets.

http://mignatiou.com/wp-content/uploads/2013/04/EU_DraftMemorandumforCyprus-01APRIL20131.pdf