Cyprus & World News

ESM Board of Directors approves €100 million disbursement to Cyprus

18 December, 2013

The Board of Directors of the European Stability Mechanism (ESM) approved Wednesday the disbursement of €100 million to Cyprus. This follows the approval of the updated Memorandum of Understanding (MoU) by the ESM Board of Governors and the positive assessment of the second quarterly review of Cyprus’s macroeconomic adjustment programme.

The current disbursement will bring the total amount of ESM financial assistance for Cyprus to €4.6 billion. The remaining portion of the approximately €9 billion committed to Cyprus by the ESM is scheduled to be paid in quarterly disbursements by 2016.

Cyprus and the Troika (European Commission, European Central Bank and International Monetary Fund) agreed on March 25 on a €10 billion bailout, which included imposing losses on bank uninsured deposits as well as fiscal consolidation measures amounting to 7.2% of GDP by 2016.