The International Monetary Fund (IMF) said today in Brussels that its contribution to the bailout of Cyprus will be of 1,000 million euros (1,340 million dollars).
Confirmation of the figure that was so far a speculation comes a day after Nicosia closed the bailout terms with its creditor -the troika- which is composed by the IMF, the European Central Bank and the European Commission.
The IMF’s board communicated that it will approve the deal in May through a statement from its managing director, Christine Lagarde.
“The Cypriot authorities submitted a multi-year program of ambitious reforms to address the economic challenges that the country is facing,” said Lagarde. It will take Cyprus over 20 years to pay back the so called financial rescue offered by the troika.
“It is a demanding program that will require great efforts from the Cypriot population,” warned Lagarde. In fact, as it has happened before, the IMF will end up being one of Cyprus’ new owners, because the terms of the loan to be received by the country are not limited to obtaining and paying off a loan. Cyprus and its close neighbor, Greece, have literally handed over sovereignty to the European Government.
“We believe that this will be a lasting solution that will help solve the problems that Cyprus faces and that will provide a sustainable recovery,” added Lagarde.
Both Lagarde and the Economic Affairs Commissioner of the IMF, Olli Rehn, stressed that there are “significant challenges” facing the Mediterranean country.
These challenges will come despite Cyprus subscribing to every little single request and demand from the troika, which intends not to help Cyprus to recover, but to micromanage every single aspect of the country’s existence.