Cyprus to contribute €460m

CYPRUS is prepared to contribute around €460 million to the International Monetary Fund (IMF) as part of the island’s contribution to the IMF’s crisis-fighting resources, Finance Minister Kikis Kazamias said.

Kazamias was speaking following the conclusion of a conference call of EU finance ministers on Monday.

The ministers discussed bilateral loans to the IMF and the eurozone’s coping mechanisms in the face of the financial crisis.

The IMF package, the result of negotiations at a December 9 EU summit, consists of around €150 billion covered by eurozone members and another €50 billion covered by the remaining member states.

Kazamias also said that they had also discussed bringing forward the creation of a European Stability Mechanism (ESM) by a year, in June 2012 instead of June 2013.

The ESM, a permanent bailout fund, would assume the role of the temporary European Financial Stability Facility – set up in 2010 to safeguard financial stability of Europe. 

Meantime, Cyprus’ €460 million contribution “is available to the IMF if and when needed,” Kazamias said.

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