PIMCO report on Cypriot lenders under examination

The International Monetary Fund and the Central Bank of Cyprus received a report by Pacific Investment Management Co (PIMCO) on the state of Cypriot lenders on Saturday morning that will determine the amount of funds the island’s credit system requires for its recapitalization and whether the IMF will deem the Cypriot debt sustainable and agree to participate in the country’s bailout.

Press reports in Cyprus suggest that the intermediary report by PIMCO estimates the capital requirements of the battered banking sector at between 9.1 and 9.5 billion euros, along the lines of estimates by Finance Minister Vassos Shiarly.

Central bank sources said that the first responses to the PIMCO data are likely by Monday afternoon, after the recipients have had time to study its contents, and that a statement is also possible, although the final estimates by the US firm will not be made available before the first two weeks of January. The same sources stressed, however, that the ultimate verdict will come from the IMF.

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