IMF: Cyprus's NPLs still high despite accelerated economic growth

Cyprus's economic growth has continued to accelerate, but private sector indebtedness and nonperforming loans (NPLs) are still at very high levels, the International Monetary Fund (IMF) said in a statement made available in Nicosia on Saturday.

An IMF mission visited Nicosia during March 19-30 for the second post-program monitoring discussions. At the conclusion of the visit, the IMF mission issued a statement pointing out that Cyprus's economy has been robust since IMF's last visit, the Mediterranean island's capacity to repay the Fund is seen as adequate.

Cyprus was pulled back from bankruptcy in a 10-billion-euro assistance package by the Eurogroup and the IMF in 2013, after consecutive quarters in the red.

The statement said Cyprus's economic growth has been supported by construction, tourism and professional services. The current rapid pace of economic...