Cyprus is moving to be the new poster child for reform in the eurozone.
The International Monetary Fund praised the country’s decision to end its three-year bailout programme two months early after it regained financial footing.
Cyprus is the latest eurozone nation to exit an IMF rescue programme and achieved it ahead of schedule.
IMF chief Christine Lagarde hailed the country for its achievements since its controversial bailout three years ago.
“I wish to congratulate the people and the Government of Cyprus on their accomplishments under the economic adjustment program, which has delivered an impressive turnaround of the economy during the past three years,” she wrote.
She said the Cypriot economy grew again last year, the banking system was on a more solid footing, spending was in control and public debt was shrinking.
But she said Cyprus needed to stick to reforms, especially in view of renewed volatility in international markets.
In March 2013 the island state was saved from financial crisis by the troika of international creditors - the IMF, the European Commission and the European Central Bank - which provided €10 billion to bail the country out.
In exchange, the troika demanded tough austerity measures and banking system restructuring, which was widely exposed to Greece's debt.
The deal sparked more controversy than usual as it demanded a portion of uninsured savings from two of the largest banks in Cyprus and resulted in the closure of a smaller lender.
