AFRICANS, NOW THE IMF COULD FORCE YOUR GOVERNMENT TO SEIZE YOUR BANK SAVINGS AND DEPOSITS!

The International Monetary Fund (IMF) has a bad reputation in Africa. Many Nigerians, for instance, will tell you the country has never recovered from the debilitating effects of the IMF's Structural Adjustment Programs (SAPs) of the late 80s.

The fund's conditionalities for bailout loans to Africa often appear to be harsher than those for loans to other continents.

Now, because of a shocking, unprecedented development over the weekend in the little island of Cyprus, these conditionalities could get even harsher.

Cyprus, with Nicosia as capital, is a small east Mediterranean island of around one million inhabitants. You've probably heard that for years Turkey and Greece both laid ownership claims to the island, going to war over it in 1974.

What you may not have heard about Cyprus is that it's a tax haven for high net-worth non-resident individuals, from Russia in particular.

Tax havens like to keep a low profile to avoid much scrutiny, so i don't even know why Cyprus joined the 17-member Euro zone.

Anyway, the country seems to have been doing just fine until Greece got into financial trouble, and Brussels forced Cypriot banks to play good neighbor by loading up on toxic Greek government bonds to the hilt. It was only a matter of time before this heavy load became unbearable for Nicosia.

Well, the chicken has come home to roost.

On Saturday, the same Brussels forced down the throat of Cyprus a multi-billion bailout package with an unprecedented condition that has shocked the world: Nicosia must grab at least 6.75% of ALL savings and deposits in its banks and contribute this seizure to the bailout package. Otherwise, Brussels will simply cut off funding to Cypriot banks and let the country of one million go to the dogs.

This is a scary development for Africa because the IMF was heavily involved in thrashing out the bailout package.

Hate to say it but the IMF still tends to push Africa around. If it can support this kind of bank raid by a Euro zone country, albeit a small one, on its citizens' deposits, then it can surely push for stricter versions of this poison pill for African countries that seek bailouts.

African governments should see the writing on the wall.