Cyprus may find it hard to convince foreign investors and credit rating agencies of the effectiveness of its fiscal consolidation efforts
The Cyprus Government may find it hard to convince foreign investors and credit rating agencies of the effectiveness of its fiscal consolidation efforts, as borrowing costs rise and the danger of having to resort to the European rescue mechanism looms, economists warned yesterday.
Cyprus said on Monday it was working on a new austerity package to stave off further credit ratings downgrades as its already high borrowing costs spiked at a sale of domestic bonds.