Cyprus should brace itself for an extended period of difficulty in the near term after sealing a bailout deal. Photo: Reuters

IMF managing director Christine Lagarde said Wednesday the IMF will contribute 891 million euros to a financial rescue package for Cyprus of 10 billion euros (12.8 billion USD). This loan will be submitted to the IMF Board of Managers for approval in early May. In order to receive this package, the EU, the European Central Bank (ECB), and the Cyprus government had to accept some binding conditions including closing the Laiki Bank and transferring deposits below 100,000 euros to the Bank of Cyprus. The Bank of Cyprus would be restructured. In addition, Cyprus has to restructure its public debt and privatize some national properties. It also has to increase corporate taxes and accept the independent anti-money laundering inspections as well as EU Bank regulations.