What were the policy conditions that the Cypriot government had to implement in order to receive financial assistance?

The key conditions of the programme were:

  • to restore the soundness of the Cypriot banking sector and rebuild depositors' and market confidence by thoroughly restructuring and downsizing financial institutions;
  • to continue the process of fiscal consolidation to correct the excessive general government deficit,  in particular through measures to reduce current primary expenditure and to increase the efficiency of public spending; and
  • to implement structural reforms to support competitiveness and sustainable and balanced growth, allowing for the unwinding of macroeconomic imbalances.