29 October 2013
Foreign creditors have asked Cyprus to open its books again to ensure the country is sticking to the terms of its bailout.
Officials from the eurozone and the International Monetary Fund will today meet a delegation from the country, including its central bank governor, Panicos Demetriades. The review, which is expected to run until early next month, will explore how its banking system is being restructured, as well as its public finances and state-owned enterprises.
Before the financial crisis, Cypriot banks grew rapidly and lent huge amounts to borrowers in Greece. They also bought big chunks of Greek government debt, meaning that when Cyprus’s neighbour went into freefall, its banking system suffered.
