Cyprus to get 10 bn euro bailout
Eurozone and the International Monetary Fund have agreed to provide a bail out package of up to 10 billion euros to Cyprus. IMF would contribute to the tune of one billion euros ($1.3 billion) in loans under the deal.
Cyprus makes for 0.2% of the combined eurozone economy — thus becomes the 5th member country to avail a debt rescue package from its eurozone partners in the three-year debt crisis.
Previously, debt packages were given to Greece worth some 380 billion euros ($496 billion), Ireland’s 85 billion euros, Portugal’s 78 billion and 41 billion for Spanish banks.
As per IMF, given the size of the total annual output of the Cypriot economy (17 billion euros), a bailout on that level would take the country’s debt burden to unsustainable levels.