The IMF on 15 September 2013 released the second tranche of bailout funds to Cyprus after completing the first review of the island’s performance under a three-year €1bn (SDR891mn, about $1.3bn) extended fund facility (EFF). The EFF deal was approved in May – following months of talks among Eurozone finance ministers over bank bailout terms (MEES, 19 April) – as part of a €10bn financing package intended to stabilize the country’s financial system, achieve fiscal sustainability and support economic recovery. The EU’s ‘Stability Mechanism’ has so far released €3bn of €9bn it committed.

Approval of the second of twelve planned equal tranches of SDR74.2mn (€84.7mn, $113.1mn) was based on a review carried out in the second half of July (using end-June numbers). The first tranche was released upon the 15 May initial approval of the arrangement. Further equal tranches – each to follow an IMF review – are planned every three months until March 2016 (the next is due on 15 December based on performance criteria at the end of this month). (CONTINUED - 828 WORDS)