Reuters: Cyprus close to a bailout deal with EU/IMF

22 November 2012

President Demetris Christofias said that Cyprus is close to agreeing a bailout package with the European Union and IMF after the latest round of talks with the international lenders.

The agreement was nearly done but would be completed only on Friday, when inspectors from the European Commission, European Central Bank and International Monetary Fund - together known as the troika - are likely to give their approval. Cyprus sought financial aid - which could be up to €17.5 billion, equal to its entire gross domestic product - from the European Union and IMF in June, after its banks were battered by their exposure to the Greek crisis.

Cyprus and the troika have been at odds over a host of issues, including privatisations and pension cuts, as well as the amount needed to recapitalise the banks. Cypriot government sources said the two sides had struck a preliminary agreement over a €17.5 billion bailout.

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