{"id":54444,"date":"2013-05-16T09:09:55","date_gmt":"2013-05-16T09:09:55","guid":{"rendered":"https:\/\/armbanks.am\/2013\/05\/16\/238426\/"},"modified":"2024-12-15T13:04:39","modified_gmt":"2024-12-15T13:04:39","slug":"imf-board-oks-cyprus-loan-warns-of-risks-reuters","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2013\/05\/16\/54444\/","title":{"rendered":"IMF board oks Cyprus loan, warns of risks: Reuters"},"content":{"rendered":"<p><strong>YEREVAN, May 15.\/ARKA\/.<\/strong> The International Monetary Fund&#8217;s executive board approved a $1.3 billion (853.7 million pounds), three-year loan to Cyprus on Wednesday, part of a larger international bailout to help the Mediterranean country avoid defaulting on its debt, Reuters reports.<br \/>\nBut IMF Managing Director Christine Lagarde said Cyprus&#8217;s bailout was subject to &#8220;substantial risks,&#8221; as the economy is likely to contract for the next two years.<\/p>\n<p>&#8220;The macroeconomic outlook is subject to high uncertainty and risks to the program are substantial,&#8221; Lagarde said in a statement. &#8220;There is no room for implementation slippages. Full and timely implementation of the program is critical to maintain credibility and achieve the program&#8217;s objectives.&#8221;<\/p>\n<p>Cyprus had to comply with certain conditions &#8211; including winding down its second-largest bank and imposing losses on large depositors &#8211; in order to receive the bailout from the IMF and the European Union, which totals 10 billion euros (8.5 billion pounds). The approval of the IMF&#8217;s board means Cyprus immediately gets $110.7 million.<\/p>\n<p>The Washington-based global lender said the financing package is meant to stabilize the country&#8217;s financial system, achieve sustainable government finances and support economic recovery.<br \/>\nLagarde said Cyprus&#8217;s first priority must be to stabilize the banking system. The outsized banking sector led to the country&#8217;s problems in the first place, after it was burned by losses on loans to crisis-hit Greece.<\/p>\n<p>Independent auditors on Wednesday said the banking system is more vulnerable to money laundering than previously thought.<\/p>\n<p>The government also must consolidate public debt to about 100 percent of GDP by 2020 in order to ensure it is sustainable, the IMF said.<\/p>\n<p>The IMF said its projections for the program assume Cyprus&#8217;s economy will contract 9 percent this year and 4 percent in 2014, before starting to recover in 2015, similar to falling economic activity in other countries with a banking crisis.\u20140-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The International Monetary Fund&#8217;s executive board approved a $1.3 billion (853.7 million pounds), three-year loan to Cyprus on Wednesda<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12139,9216],"tags":[13401,13191,15917,12294],"class_list":{"0":"post-54444","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy-en","7":"category-news","8":"tag-approve","9":"tag-cyprus","10":"tag-imf-2","11":"tag-loan"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/54444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=54444"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/54444\/revisions"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=54444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=54444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=54444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}