The Cyprus Fiscal Council has called for immediate planning to gradually address the central government's more than €10 billion debt to the Social Insurance Fund. The Council, in a formal statement, highlighted that the increasing debt poses a significant risk to public finances and must be considered when evaluating the Fund's long-term viability.

The Council also urged the government to curb non-discretionary expenses and prioritize enhancing public sector productivity before embarking on mass hiring. "The need for action is urgent, regardless of the political cost," the statement read.

Further, the Council advised that any outstanding expenses, for which plans or political commitments exist, should be promptly incorporated into the government’s budget estimates.

On economic trends, the Council noted the emerging pressures on Cyprus' economy, citing current monetary policy that has tightened credit and reduced consumer demand. The economic outlook is also clouded by the projected partial rebound in the prices of key commodities like fuel, along with marginal inflation recovery.

The Council emphasized the necessity of accelerating the implementation of the Recovery and Resilience Plan (RRP) terms, particularly under current economic conditions. It suggested increasing pressure on both legislative and executive bodies for the speedy fulfillment of the terms required for the plan's second installment.

The Council will revisit growth rate estimates next September, anticipating no significant deviation from the current projection of 2.4%.

Meanwhile, Cyprus President Nikos Christodoulides met with representatives of the Institute of Certified Public Accountants of Cyprus (ICPAC) at the Presidential Palace on Thursday. Finance Minister Makis Keravnos was also present.

The discussions centered on tax transformation, sanctions against Russia, and the establishment of a unified authority for sanctions and money laundering. ICPAC President Nicos Chimarides expressed optimism following the meeting, stating, "We discussed how ICPAC can contribute to solving economic issues and growing the economy. The meeting was productive, and we look forward to continuing our excellent cooperation."

When asked about the discussion on sanctions, Chimarides described the issue as "extremely important." He indicated that government considerations are heading in the right direction and have ICPAC's support.