IMF will contribute 1 billion euros to Cyprus bailout

BRUSSELS Wed Apr 3, 2013 1:12pm EDT

International Monetary Fund (IMF) executive director Christine Lagarde attends a news conference at the end of a Eurogroup meeting at the European Council building in Brussels, March 25, 2013. REUTERS/Sebastien Pirlet

International Monetary Fund (IMF) executive director Christine Lagarde attends a news conference at the end of a Eurogroup meeting at the European Council building in Brussels, March 25, 2013.

Credit: Reuters/Sebastien Pirlet

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BRUSSELS (Reuters) - The International Monetary Fund will contribute 1 billion euros ($1.29 billion) over three years to the 10 billion euro bailout for Cyprus, IMF Managing Director Christine Lagarde said in a statement on Wednesday.

Lagarde said she expected the IMF board to approve the funds in early May.

"A staff team of the International Monetary Fund has reached staff level agreement with the Cypriot authorities on an economic program that will be supported by the IMF jointly with the European Union and the European Central Bank," Lagarde said.

"A combined financing package of 10 billion euros is designed to help Cyprus cover its financing needs, including to service debt obligations, while it implements the policies needed to restore the health of the economy and regain access to capital market financing," she said.

(Reporting By Jan Strupczewski; Editing by Claire Davenport)

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Comments (4)
reutersowner wrote:
10 billion euros printed out of thin air, and we continue to dominate the world, making everyone work for us to pay off this debt we just created.

Apr 03, 2013 10:08am EDT  --  Report as abuse
Harry079 wrote:
“including to service debt obligations, while it implements the policies needed to restore the health of the economy”

Well now we can’t have Cyprus not paying the bond holders right?

Just what policies are they going to implement to restore the health of the economy?

Higher taxes, less pay, reduced pensions & benefits?

Apr 03, 2013 10:42am EDT  --  Report as abuse
Doc62 wrote:
Stupid move. Cypress is controlled by the Mafia. It’s like giving Karzai desperately needed US tax money. No more endless bailouts!
There’s a hole in the bottom of the sea, there’s a hole, there’s a hole…

Apr 03, 2013 1:18pm EDT  --  Report as abuse
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