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Moody’s upgrade reflects performance in a challenging environment, says FinMin

Moody’s upgrade by two notches and the placing of Cyprus’ economy in the investment grade, after almost 11 years, demonstrates the remarkable performance of the Cypriot economy in a very difficult environment internationally, Minister of Finance, Makis Keravnos, highlights. He underlined that the upgrade also reflects “the Government’s efforts to implement an efficient economic policy aimed at supporting the robustness of the economy, public finances and the banking sector”. At the same time, commenting on the DBRS credit rating upgrade of the Republic of Cyprus, from BBB, to “BBB (high), with a stable outlook”, the Minister of Finance stated that the agency’s decision is driven by “the declining path of public debt and the expectation that it will continue to decline in the coming years, by the economic growth, which even if declining, remains among the strongest in the Eurozone, and by the projected real GDP growth, which is estimated to 2.4% in 2023 and to 2.7% in 2024”. In a written statement, Keravnos also mentions that with the Moody’s upgrade, “the Republic of Cyprus is now classified in the investment grade by all international rating agencies and in fact by two levels within the investment grade, with the exception of DBRS which ranks Cyprus at the third level of the investment grade”. The Minister assures that the government “will continue to support economic activity in the face of the challenges it has to overcome”, in a responsible way in terms of development and employment and public finances”. “To achieve this goal, the Ministry of Finance supports the Cypriot economy and society in a targeted and flexible way by promoting the appropriate financial plans which will allow the maximum possible utilization of the offered European funds and programs”, he underlines.

Source: Cyprus News Agency