Cyprus completed the rescue program with the IMF ahead of schedule. In addition, the EU country in late March leaves the euro bailout. Cyprus had received 2013 billion euros from the IMF and nine billion euros from the euro zone.
Cyprus has agreed with the International Monetary Fund part of a 2013 agreed bailout ten weeks earlier completed as planned. That said, the director of the International Monetary Fund, Christine Lagarde.
She praised the Euro Zone for “an impressive turnaround of the economy” in the past three years. The Cypriot economy has grown again in the past year, the banking system would be on a more solid foundation. Furthermore, the expenditure was shrinking under control and the national debt, said the IMF chief.
The euro rescue package leaves Cyprus late March. The island nation could now finance itself again, said Euro Group boss Jeroen Dijsselbloem at the meeting of finance ministers of the euro group in Brussels. The euro country did a good job with its renovation and taken only 6.5 of up to 10 billion euros to complete. The outlook is now much better.
Cyprus had received one billion euros from the IMF and another nine billion euros of its partners in the euro area as part of a rescue agreement in March 2013. This was necessary in part because its banking system was about to collapse because of the close links with Greece.
As part of the austerity program, the government imposed capital controls to prevent a collapse of the banking system. Simultaneously uninsured deposits were confiscated in the two largest financial houses of the country. The smaller of the major banks has been shattered.