Friday, March 15, 2013

IMF chief to join eurozone talks on Cyprus bailout

WASHINGTON: International Monetary Fund chief Christine Lagarde will attend a eurozone finance ministers' meeting Friday to discuss a potential bailout for Cyprus, an IMF spokesman said Thursday.


Spokesman Bill Murray declined to say whether the IMF will participate in a bailout of the Mediterranean island state.

But he reiterated that the IMF wants a "durable solution" to Cyprus's financial crisis that provides debt sustainability. Eurozone finance ministers are to meet in Brussels after a two-day European Union summit ends to work on a bailout plan for Cyprus.

Cyprus requested financial assistance from the EU in June 2012 after its two largest banks sought state aid following massive losses linked to neighboring Greece's debt crisis.

The mooted 17-billion euro ($22.0 billion) bailout would be roughly the same as Cyprus's annual economic output.

Murray declined to comment on what size of debt burden would be considered sustainable.

"It's a little early to be getting into the sense of the analysis" that is under way, he said.

indiatimes.com

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