The IMF’s executive board has approved a $1.3 billion loan for Cyprus as part of a larger bailout package meant to avert a debt default.
The IMF, one of the “troika” of international lenders behind the bailout, said Wednesday it had agreed to provide a 3-year loan of $1.33bn for the small Mediterranean country, its contribution to a 10 billion euro ($13.3bn) total bailout.
The approval allows an immediate payout of $110.7 million.
The IMF said the loan was “intended to stabilize the country’s financial system ... and support the recovery of economic activity.”
Cyprus had to meet certain conditions to obtain the funds which included forcing depositors to take major losses on savings over 100,000 euros in the country’s two biggest lenders.