IMF approves $1.33bn loan for Cyprus

On Wednesday, the IMF’s executive board approved the three-year loan to Cyprus as part of a larger international bailout to help the country avoid bankruptcy.

“It is intended to stabilize the country’s financial system, achieve fiscal sustainability, and support the recovery of economic activity to preserve the welfare of the population,” the IMF said in a brief statement on Wednesday, AFP reported.

The troika of international lenders — the IMF, the European Commission and the European Central Bank (ECB) — agreed in March to give $13.1-billion (10 billion-euro) rescue loan package to Cyprus to recapitalize its shaky banking system and help the country avoid bankruptcy.

On Monday, the European Union handed over the first two billion euros ($2.5 billion) of the international aid package.

The bailout would save Cyprus from bankruptcy and possibly guarantee its future in the eurozone.

However, Cyprus must take a series of emergency measures in exchange for the financial aid. The measures include tax hikes, privatizations, and a radical overhaul of the country’s weak financial sector.


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