The International Monetary Fund sees a significant slowdown of the Cypriot economy due to the war in Ukraine.The IMF stresses that additional support measures may be needed, but the key is the targeting of these measures in order to protect fiscal space given the high level of public debt. [AT THE SAME TIME, THE IMF RECOMMENDS FISCAL ADJUSTMENT FOR A GRADUAL RETURN TO BALANCED BUDGETS, ATTENTION TO THE BANKING SECTOR FOR POSSIBLE DETERIORATION IN ASSET QUALITY, MORE VIGOROUS IMPLEMENTATION OF TOOLS TO REDUCE THE STOCK OF NPLS BOTH WITHIN AND OUTSIDE THE BANKING SECTOR, AND IMPLEMENTATION OF REFORMS THROUGH THE RECOVERY AND RESILIENCE PLAN AND ADDRESSING OBSTACLES TO GROWTH.
In a statement on the conclusion of the meetings with the Cypriot authorities in the framework of
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