Cyprus bailout decision pushed back to 2013
Tuesday 11 December 2012
No decision can be taken on Cyprus’ bailout before the audit of the country’s banking sector is fully finalised. The European Commission is currently analysing the preliminary results of this audit but the final results are not expected before mid-January 2013. This pushes back any agreement on the bailout size and conditions attached to it to the Eurogroup meeting, scheduled for 21 January, at the earliest. At the end of the Eurogroup meeting, on 3 December, there was still hope of an agreement before the end of this year.
Europolitics understands the size of the aid could be close to that of the country’s gross domestic product, which is under €18 billion. Pressure to agree on the bailout will increase as Cyprus moves closer to the date of general elections, planned for mid-February.