IMF says Cyprus must act fast to avoid crisis

NICOSIA: Cyprus must take swift action to shore up its economy, the IMF warned on Wednesday, saying its economy was facing strong headwinds and substantial downside risks which were likely to persist.

"We think the situation at the moment is very serious. The fact that the government cannot access the capital markets is very serious and the risks to the banking sector compound that. The first priority for Cyprus is to do all it can to avoid that these problems get out of hand," said Eric Jan de Vrijer, a member of an IMF mission visiting Cyprus for a regular consultation.