IMF Withholds Cyprus Cash Until Foreclosure Bill Passed

Continued payments under Cyprus’ international bailout are in jeopardy as lawmakers have watered down bills that would force repayment of bad loans.

The IMF and European authorities (collectively known as ‘The Troika’) have repeatedly said that getting Cyprus’ banking system back on a firm financial footing requires cleaning up the banks’ loan books and that this requires giving them the legal ability to call in bad loans – something they currently lack. The Troika have highlighted this issue in each of their previous reports on Cyprus, but this is the first time that they have made doling out aid conditional on action.


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