BRUSSELS, Feb. 11 (Xinhua) -- The international lenders warned Tuesday Cyprus of challenges in financial and fiscal sectors remaining need to be addressed by a series of reforms.
The so-called "Troika", namely the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF),
said in a joint statement that Cyprus's program remains on track, with the macro-fiscal outturn better than expected.
After the third review of Cyprus's economic program, which is supported by financial assistance from the European Stability Mechanism (ESM) and the IMF,the international lenders showed cautionly optimistic over the country's outlook.
According to the conclusion after review, Cyprus's financial sector is facing two major challenges ,which are dealing with the high level of non-performing loans and the needs to normalise payment flows in the economy while safeguarding financial stability.
Another uncertainty comes from fiscal reform,"the authorities will need to continue to implement their budget prudently," the statement said.
"The implementation of structural reforms needs to be accelerated. A key priority is the reform of the social welfare system," Troika said.
Conclusion of this review is subject to the approval process of both the European Union (EU) and the IMF and is expected to be considered by the Eurogroup, the ESM Board of Directors, and the Executive Board of the IMF by early April. Its approval would pave the way for the disbursement of 150 million euros by the ESM, and about 86 million euros by the IMF.