IMF will contribute 1 billion euros to Cyprus bailout

The International Monetary Fund will contribute 1 billion euros over three years to the 10 billion euro bailout for Cyprus, IMF Managing Director Christine Lagarde said in a statement on Wednesday.

Lagarde said she expected the IMF board to approve the funds in early May.

"A staff team of the International Monetary Fund has reached staff level agreement with the Cypriot authorities on an economic program that will be supported by the IMF jointly with the European Union and the European Central Bank," Lagarde said.

"A combined financing package of 10 billion euros is designed to help Cyprus cover its financing needs, including to service debt obligations, while it implements the policies needed to restore the health of the economy and regain access to capital market financing," she said.

(Reporting By Jan Strupczewski; Editing by Claire Davenport)