PIMCO results instrumental in determining Cyprus program, IMF says

PIMCO preliminary assessment results will be instrumental in determining the financing of a potential Cyprus program, IMF Spokesman Gerry Rice has said.

Rice was replying to a question on the progress achieved in talks with the Cyprus government on an international rescue agreement.

“The discussion between the Cypriot authorities and the IMF and our partners in the EU Commission and ECB are continuing from the respective headquarters with a view to making further progress toward a potential program with Cyprus”, he noted.

The preliminary results of the banking sector assessment were delivered by PIMCO this week and now are being analyzed, he said, adding that “they will be instrumental in determining the financing of a potential program”.

Rice also referred to a Eurogroup statement on Cyprus, earlier on Thursday which “also took note of the interim results of that due diligence exercise of the financial sector on the capital needs of the Cypriot financial sector”. What the Eurogroup said, he said, “was that the final results are expected in the middle of January”.

“Yes, I can confirm that the IMF staff is in Brussels to review that financial sector study with our European partners”, he concluded.

PIMCO’s preliminary report is carried out in the context of Cyprus’ application for financial assistance by the EU bailout mechanism.