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IMF to provide 1 bn euros to Cyprus rescue

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(Globalpost/GlobalPost)

The International Monetary Fund has agreed to provide approximately one billion euros to the 10-billion-euro rescue plan for cash-strapped Cyprus, managing director Christine Lagarde said on Wednesday.

This would be through a three-year 891 million Special Drawing Rights (about one billion euro) loan," Lagarde said in a statement, adding that she expects the deal to go to the IMF executive board for approval in early May.

The IMF, European Commission and European Central Bank agreed with Cyprus on Tuesday the terms of a programme that will see the country drastically downsize its bloated banking sector and put state finances in order.

"The Cypriot authorities have put forward an ambitious, multi-year reform programme to address the economic challenges they face," Lagarde said, describing it as "resolute."

"The overarching goals are to stabilise the financial system, achieve fiscal sustainability and support the recovery of economic activity to preserve the welfare of the population."

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http://www.globalpost.com/dispatch/news/afp/130403/imf-provide-1-bn-euros-cyprus-rescue-0