IMF says Cyprus at risk of even deeper recession

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Associated Press

Posted on May 17, 2013 at 10:01 AM

Updated Friday, May 17 at 10:02 AM

WASHINGTON (AP) — The International Monetary Fund says serious economic risks remain for Cyprus even after a big international bailout.

An IMF report Friday predicts a deep recession in Cyprus this year and next. The report also says there's a danger that the downturn could worsen if authorities don't strictly follow the terms of the bailout deal.

Those conditions include forcing bank depositors to take major losses on large savings held in the country's two biggest lenders.

Also the second-largest bank is being folded into the larger Bank of Cyprus.

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