Discussions with Cypriot authorities and European partners are continuing on financing solutions, consistent with the sustainability of the Cypriot debt, Gerry Rice, Director of the International Monetary Fund (IMF) External Relations Department has said.

Invited to say when there will be a programme for Cyprus, Rice said that he has no specific date to announce.

He said there are discussions, the IMF had a mission in Cyprus and is expecting the diligence audit for the banks, adding that all this will be taken into consideration.

Asked when the results of the review concerning the banking sector will be available, he said that “the preliminary estimate of bank capital needs is expected from PIMCO during the first week of December and these results will be instrumental in determining the financing envelope that would underpin a potential programme with Cyprus.”

He noted that final results are expected to be made public early in 2013.

An IMF mission was in Cyprus recently for negotiations with the government on the terms of a bail out agreement. Representatives of the European Central Bank and the European Commission were also part of the negotiating team with Nicosia.

The Government of the Republic of Cyprus informed on the 25th of June 2012 the appropriate European authorities of its decision to submit to euro area Member States a request of financial assistance from the EFSF/ESM. The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spill over effects through its financial sector, due to its large exposure in the Greek economy.