A draft document by Cyprus’ international creditors shows the island nation will have to take on the lion’s share of the measures needed to avoid the nation’s bankruptcy.
The draft document, obtained by The Associated Press Thursday, says the restructuring imposed on Cyprus’ financial system, including heavy losses on large bank deposits, additional taxes, privatizations and a part-sale of the central bank’s gold reserves are expected to net 13 billion euros ($17 billion).
The country’s international creditors – the European Commission, the European Central Bank and the International Monetary Fund – are set to grant the Mediterranean island nation a 10 billion euros ($13 billion) rescue loan package. Cyprus – a member of the 17-nation eurozone – was initially expected to contribute only 7 billion euros to the bailout package. [AP]