IMF supports Cyprus in the implementation of its aid programme

IMF Managing Director Christine Lagarde has reassured President of the Republic Nicos Anastasiades of IMF support for his government’s efforts to implement a multi billion aid programme Nicosia has agreed with its international lenders.

Her assurances are in response to a letter sent by President Anastasiades last month to the heads of the IMF, ECB and the European Commission regarding Cyprus’ MoU.

Speaking today during the regular media briefing, IMF spokesman Gerry Rice confirmed that IMF Managing Director had replied to the President’s letter.

“The managing director welcomed the president’s determination to continue on the path of sustainable growth and reassured him of IMF’s support for the government’s efforts to impellent this very ambitious program”, Rice noted.

Referring to next week’s visit to Cyprus by a troika mission, Rice said that "together with our European partners in the European Commission and the ECB, the IMF team will begin on July 17 talks with the Cypriot authorities over the first inspection of the economic program."

He stressed that “together with our partners for the EU Commission and ECB the IMF staff team will start discussions with the Cypriot authorities on the first review of the country’s economic program in July 17”.

The visit is expected to last about two weeks, he added.

IMF spokesman said that “since it’s the first review we will be assessing progress in the implementation of the program and agreeing on policies for the upcoming period”.

“We expect the talks to focus on the financial sector reform, the microeconomic and fiscal performance and outlook and some other structural reforms”, he concluded.

Cyprus agreed with international lenders on 10 billon euro aid package under which it closed down the Popular Bank, and imposed painful losses on deposits of more than 100,000 euros held at the euro zone state’s biggest lender, Bank of Cyprus. Both institutions were heavily exposed to the Greek debt.