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Eurogroup OK's Next Cypriot Loan

Cyprus_crisisEurozone finance ministers have approved a 1.5 billion euro loan tranche to Cyprus as part of that country’s 10 billion euro bailout the government sought to keep its banks and economy from collapsing.
“The Eurogroup welcomes the conclusion of the troika’s first review mission that the adjustment program for Cyprus is on track,” a statement issued by the Eurogroup said.
“The Cypriot authorities have taken decisive steps to stabilize the financial sector, meet the fiscal targets and taken structural reforms forward. Because the short-run economic outlook remains difficult and subject to considerable uncertainty, continued full and timely policy implementation remains essential for the success of the program,” the statement read.
To quality for the bailout, the government had to come up with 13 billion euros ($17 billion) in revenue and spending savings and confiscated 47.5 percent of bank accounts over 100,000 euros ($130,000) and implemented strict capital controls to prevent a run on the banks.
“The Eurogroup looks forward to the swift implementation of the Anti-Money Laundering action plan and welcomes that Cyprus has taken effective action toward correcting the excessive deficit by 2016 as recommended,” the Eurogroup said.
It added that it “endorses the disbursement of the next tranche of financial assistance to Cyprus following the fulfillment of the prior actions and the completion of the relevant national procedures. The disbursement of 1.5 billion euros is foreseen to take place by end-September, after the formal approval by the ESM Governing bodies.”
The board of the International Monetary Fund will decide on the disbursement of another 86 million euros to Nicosia on Sept. 16.

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