Greece Troika Making ‘Good Progress,’ Cyprus’s Shiarly Says

Officials from the so-called troika that oversees euro-area bailouts have made “good progress” in Greece, Cypriot Finance Minister Vassos Shiarly will tell a meeting of the International Monetary Fund in Tokyo on Oct. 13.

“Since July, the mission has had productive discussions with the authorities and has made good progress,” Shiarly will say, according to a draft of his remarks obtained by Bloomberg News.

Shiarly will address the IMF’s policy-steering committee in his capacity as head of the European Union council of economic and finance ministers, according to the draft. His remarks describe progress stabilizing the euro area amid a “fragile” global economy, as further challenges remain.

Ireland’s rescue program remains “well on track” and Portugal is “broadly on track,” according to the draft. The remarks describe Spain as “well on track” in implementing agreed measures as a condition of its financial-sector bailout.

“Euro area leaders are taking all necessary measures to safeguard the integrity and stability of the euro area,” Shiarly is due to say. The prepared remarks reiterate the 17-nation bloc’s pledge to create a single bank supervisor and to work with Cyprus on a full-fledged rescue program.

Shiarly will welcome efforts by some nations to follow up on pledges to increase the Washington-based lender’s resources by $456 billion. Preliminary numbers in the draft suggest that 10 nations will have signed loan agreements of $286 billion by the time the policy committee meets.

Mexico City Meeting

According to a separate document, the EU plans to urge the Group of 20 nations to “illustrate in a clear manner” how better financial-sector regulation can help the global economy recover from crisis and return to growth.

Heading into a November meeting of finance ministers and central bankers in Mexico City, the G-20 agenda includes possible additional growth-supporting measures, a better mix of short-term and medium-term actions, and “more thorough” reviews of efforts so far. The EU will urge the G-20 to commit to “more decisive policy action” on global economic rebalancing, as well as an updated set of “credible and ambitious” country-specific fiscal targets, according to the document.

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