Implementasi Economic Adjustment Program International Monetary Fund Dalam Penyelesaian Krisis Finansial Di Cyprus

Abstract

In the development of the world economy, there have been many various kinds of economic problems that occur in each country. Those problems eventually lead to a significant impact on the economy of the country. In addition, it also causes people to experience distress in every country in economic terms. One interesting example is the economic problem in the case of financial crisis that occurred in Cyprus. Financial crisis in Cyprus was due to the domino effect of the Greek crisis. Haircut policy that imposed by the Greek government in 2011 made fall of the obligations of Greek government bonds held by banks Cyprus. Haircut policy was set to make a cut of 75-80 % on Greek bonds. It makes Cyprus a financial crisis and the collapse of the banking Cyprus. Cyprus banking was even threatened to be closed. To overcome the financial crisis, the Government of Cyprus cut the country's budget. Unfortunately, these efforts were still not able to overcome the financial crisis and finally brought the government bailout of Cyprus to appeal to IMF as a global financial organization through EU summit on June 25, 2012. As a result, IMF agreed to provide bailout € 1 billion to Cyprus accompanied by economic adjustment program as a recipe to be run by the Government of Cyprus witnessed by the European Commission and European Central Bank. The economic adjustment program focused on the target of financial sector regulation and supervision, fiscal policy, fiscal structural measures, labor market, goods and services markets.