International Monetary Fund(IMF) has agreed to grant 84.7 million euros(USD 113.1 million) in financial aid to Cyprus, as part of a 10 - billion - euro bailout program to the debt - stricken country.
On Monday, the IMF said it agreed, in partnership with the European Union, on the bailout package for Cyprus, extending the total loan amount to 169.4 million euros (USD 226.2 million) to date so far. The loan, known as the Extended Fund Facility, is part of a 10-billion-euro package from the EU financial emergency fund or the European Stability Mechanism. The bailout would save Cyprus from bankruptcy and possibly guarantee its future in the eurozone. On May 13, Cyprus received its first installment loan for two billion euros in exchange for breaking up the Cypriot banking sector. The country plunged into economic meltdown in 2012 as Greece's financial crisis spilled over, crippling Cypriot banks and forcing depositors to accept reductions in the value of their bank accounts. Europe plunged into financial crisis in early 2008. The worsening debt crisis has forced the EU governments to adopt harsh austerity measures, triggering protests against spending cuts in many European countries.