IMF Blocks Cyprus Bailout Agreement: Report

[Purveyor]

NICOSIA, March 23 (Xinhua) -- The International Monetary Fund (IMF) is blocking a bailout agreement for Cyprus by insisting the merger of the Mediterranean island's two largest banks, the official Cyprus News Agency reported on Saturday.

The agency quoted a senior official of the Cypriot side in the negotiations with international lenders as saying that "we are not even near an agreement with the troika."

The official was also quoted as saying that lack of an agreement is entirely due to the inflexible stance of the IMF representative.

She is raising new issues every half an hour, the official said, referring to Delia Velculescu, who heads the IMF delegation.

The official familiar with the negotiations said, on condition of anonymity, that Velculescu is sticking to directions by IMF chief Christine Lagarde that the Bank of Cyprus be treated in the same way as the Cyprus Popular Bank.

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http://news.xinhuanet.com/english/world/2013-03/24/c_132257400.htm

[RB TexLa]

1. Then they should say no, and see how things work out for them.