IMF warns Cyprus of pension spending surge as reform talks advance

The IMF has warned that ageing-related spending pressures will push Cyprus’s pension and health costs well above 4% of GDP by 2050, coinciding with the government’s preparation of a second phase of pension reform that will shape the system for decades to come.

In its latest assessment of the Cypriot economy, the Fund cautioned the government to maintain adequate fiscal space and avoid permanent spending commitments that would make it harder to meet future obligations....