World Bulletin / News Desk
IMF Managing Director Christine Lagarde met the leader of bailout candidate Greek Cyprus on Thursday, with both sides giving little away on the timing of financial aid to the island, battered by its exposure to Greece.
Euro zone minnow Greek Cyprus, with a GDP of just 17 billion euros, asked for aid in June to rescue its largest banks, heavily exposed to Greek debt. Talks with the European Commission, the IMF and the European Central Bank, known as the troika, have been inconclusive.
"We had a good and productive engagement about the ongoing discussions concerning Cyprus," Lagarde told reporters after meeting Greek Cyprus President Demetris Christofias, without elaborating. She was in Greek Cyprus to attend an informal gathering of European Union and euro zone finance ministers.
Greek Cyprus became the fifth euro zone nation to seek aid after its second largest bank failed to meet European regulatory capital requirements when it wrote down Greek sovereign debt holdings earlier this year. The island's largest bank has also sought state aid.
In addition to seeking aid from international lenders, the island has sought a 5 billion-euro bilateral loan from Russia, a close business and political ally.
Bailout estimates from the troika are still unclear, though some accounts put the figure at 10 billion euros.
In return, international lenders are demanding salary and pension cuts, pension reform and privatisations. Greek Cyprus's leftist government, which faces a general election in five months, has repeatedly said any measures should be balanced and not push the island deeper into recession.
Asked about the timing of any bailout deal, Christofias said: "When we are ready."
Greek Cyprus intends to counter the troika's proposals with proposals of its own, a government official said. Authorities plan to consult political parties and labour unions, a move the official said would give authorities a stronger hand in negotiations.
According to the ratings agency Moody’s, Iran is fiscally and structurally well placed to come back into the global economic scene
PM Davutoglu meets the heads of the world's largest companies as he promotes Turkish economic interests at World Economic Forum
Fund cuts global growth forecasts for both 2016 and 2017 by 0.2 percentage points
'Runaway inequality has created a world where 62 people own as much wealth as the poorest half of the world’s population'
At a meeting in Vienna on Friday, the Organization of the Petroleum Exporting Countries decided against cutting output to raise prices
OPEC has agreed to raise its output ceiling to 31.5 million barrels per day
OPEC's poorer nations, led by Venezuela, want a cut to help boost prices
Move gives international recognition to renminbi, fund's Christine Lagarde says
Summit is expected to provide member states with opportunity to consult, exchange views on the most important issues concerning them in the framework of the Gas Exporting Countries Forum
Slowdown in Chinese economy, rising oil stocks in US, and oversupply from OPEC are all factors making price of oil lower
'World is more connected than ever before. More and more developing countries are seeking to join global trade networks,' WTO director-general says
European Central Bank is ready to use ‘all instruments available’ to stimulate the eurozone economy, Draghi says
Kazakhstan has overtaken Australia as the lead supplier of uranium for US reactors.
Depreciation of emerging market currencies, combined with low commodities prices, have made investors around the globe nervous