IMF Approves Fund Injections Create Cyprus

Finally, the Director of the International Monetary Fund (IMF), Christine Lagarde gives around 1 billion euros as part of a financial rescue plan of 10 billion euros Cyprus.

Christine Lagarde hopes the deal is approved the IMF executive board in early May. Where the IMF, European Commission and European Central Bank have agreed to terms with Cyprus bailout program that would force the state to drastically downsize the banking sector and put state finances in cash.

As is known, as part of the deal has closed Cyprus Laiki Bank (Popular), and transfer of deposits under 100,000 euros to recapitalize the country's largest lender, the Bank of Cyprus. While the deposits of more than 100,000 euros will be subject to deductions that can reach 60 percent of the value of their savings. Similarly, a recent report from the European region which we have quoted from sindonews.

While reported from Spain, the Spanish government was awaiting the outcome of negotiations with the EU on budget deficit targets before deciding tax policy in 2014.

'2014 tax decision is unclear, depending on negotiations with the European Commission and other EU partners, "said Budget Minister Spain, Cristobal Montoro conference in Madrid, as reported by Bloomberg, on Wednesday (04/03/2013).

Traded yesterday, the euro rose slightly against the U.S. dollar after data showed U.S. private sector job creation that is smaller than expected and slowing the rate of growth of the service sector, adding to fears of a stalled recovery in the world's biggest economy.

But the euro is still in a vulnerable position following the recent weakness of some of the data as well as the political deadlock in Italy and the crisis in Cyprus. That could push the ECB President Mario Draghi to cast a dovish in a press conference this Thursday.