Cyprus Said to Face 100% Debt-to-GDP Target by 2020 for Bailout

A planned bailout for Cyprus, the fifth euro-area country to seek external aid, may contain a debt target of about 100 percent of gross domestic target in 2020, three European Union officials said on condition of anonymity because the talks are private.

In a replay of last year’s standoff over Greece, the International Monetary Fund is insisting that European loans for Cyprus come with steps to reduce the country’s debt burden. IMF Managing Director Christine Lagarde said last month that the plan for the country should address debt sustainability as well as a return to markets and economic growth.