IMF withholds Cyprus' bailout money installment over foreclosure law suspension

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The International Monetary Fund says it won't release $108 million (88 million euros) in rescue money for bailed-out Cyprus after the country's parliament voted to hold a key foreclosure law from taking effect at the end of December.

An IMF statement said Thursday's month-long suspension of the law contravened the terms of its $12.28 billion (10 billion euro) rescue deal reached in March last year. The law would have made it easier for the country's hobbled banks to start collecting on a huge amount of bad loans.

The statement said the IMF will discuss the next steps with Cypriot authorities. The European Union had released a $430 million (350 million euro) installment prior to the vote.