IMF head Christine Lagarde. Photo by EPA/BGNES
The International Monetary Fund has announced that it will contribute a total of EUR 1 B, or about 10% of a bailout package for Cyprus in exchange for widespread reforms in the island nation.
The IMF’s contribution would be through a three-year loan, representing about 563 percent of Cyprus’ quota, under the Extended Fund Facility (EFF).
“This is a challenging program that will require great efforts from the Cypriot population,” IMF head Christine Lagarde has said in a statement.
“We believe that it provides a durable and fully financed solution to the underlying problems facing Cyprus and provides a sustainable path toward a recovery.”
The statement follows agreement on Tuesday between Cyprus and the so-called troika of international organizations — the European Central Bank, the European Commission and the IMF - that negotiated the EUR 10 B bailout and the terms of the deal.