IMF will provide one billion euros to Cyprus

The International Monetary Fund has agreed to provide approximately one billion euros to the 10-billion-euro rescue plan for cash-strapped Cyprus, managing director Christine Lagarde said on Wednesday.

This would be through a three-year 891 million Special Drawing Rights (about one billion euro) loan,” Lagarde said in a statement, adding that she expects the deal to go to the IMF executive board for approval in early May.

The IMF, European Commission and European Central Bank agreed with Cyprus on Tuesday the terms of a programme that will see the country drastically downsize its bloated banking sector and put state finances in order.