Government expects loan deal with Russia the soonest
Acting Government Spokesman Christos Christofides
FAMAGUSTA GAZETTE
• Tue, Jul 31, 2012

The government aims at concluding a deal with the Russian Federation on a bilateral loan agreement “the soonest possible”, Acting Government Spokesman Christos Christofides said here today.

In statements to the Press, Christofides said the issue was “delicate” and noted that publicity could harm the process, while it is still ongoing.

Asked whether there is a deadline for concluding the deal, Christofides said “the soonest possible, respecting always the procedure and the dialogue with the other side”.

A Troika delegation (European Commission, ECB, IMF) wrapped up its contacts on the island last week, following Cyprus’ request for an EU bailout.

The delegation held contacts with the government, the trade unions, semi-governmental organizations, political parties and other authorities and will be back in September.

The Finance Ministry has announced that consultations will continue via teleconferences in August.

The Troika was in Cyprus early July as well on a fact finding mission for a close scrutiny of the banking sector, which has been severely hit by Greek sovereign debt haircut and over-exposure to the Greek economy, as well as the refinancing requirements of the government.

Cyprus requested a loan from Russia to support its banking sector. The Russian government last year gave Cyprus a three-year loan of 2.5 billion euros. The second request for a loan from Russia is said to be around 4.5 – 5 billion.

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