Fitch Ratings agency’s last statement on Cyprus, has estimated that the country will not require the full 10 Billion Euros financial aid granted by its international creditors in March 2013.
The agency issued positive ratings for Cyprus, affirming its long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘B-‘ with a positive outlook.
Fitch explained its ratings by stating that recent fiscal over-performance has improved the public debt dynamics and strong budget performance means that the buffers in the program have grown close to 3 Billion Euros or 17 percent of the GDP and that the underlying trend for public finances has been positive. The fiscal deficit in 2014 was 0.2 percent of the GDP compared with Fitch’s predictions of 3.3 percent in October.
“The over-performance reflects a combination of higher tax revenues and lower-than-expected expenditure across most items. The strong budget execution should help keep future deficits lower,” the statement said.