Saturday March 28, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Cyprus election favorite in talks to clinch bridge loan

The frontrunner in Cyprus's presidential election runoff said on Thursday he has been in touch with governments and unspecified funds for a bridge loan to ensure the island nation does not run out of cash before it secures an international bailout.

Conservative leader Nicos Anastasiades, who polled over 45 percent in last Sunday's first voting round and is the favorite to win the February 24 runoff, told Reuters various parties, including "governments and funds" which he did not identify, had been "sounded out" for a short-term loan.

The "one or two month" loan would not supplant a bailout for which Cyprus is in talks with the European Union and the International Monetary Fund, he said.

"This would be in order to complete the (bailout) loan agreement with some comfort, without the threat or the fear of collapse," Anastasiades told Reuters at his party offices.

"That means not to be under the dilemma of a deadline," he added.

The 66-year-old lawyer declined to say whom he had contacted. It was the first time a presidential candidate in Cyprus has disclosed talks to secure a loan ahead of a bailout rescue - talks which have dragged on for eight months.

"We would want a very short period to study the (bailout) terms, to see how we could avoid distortions without dealing with the pressure of the state going bankrupt," said Anastasiades, who faces leftist rival Stavros Malas on Sunday.

Malas, a pro-bailout but anti-austerity independent backed by the Communist party now in government, lags Anastasiades by 18 points in opinion polls.

A Socialist party that endorsed a third candidate in the first round has not backed either candidate, boosting hopes for the conservative chief known for his no-nonsense manner.

With Cyprus shut out of financial markets for almost two years, its outgoing leftist government has relied on short term and costly financing for months to meet its day-to-day needs.

The island nation is badly in need of a bailout of up to 17.5 billion euros - almost the size of its gross domestic product - mainly due to the devastating impact of a Greek debt restructuring on its outsized banking sector in early 2012.

Investors are closely watching Cyprus's bailout discussions amid fears continued delays in clinching a bailout could hurt confidence in the euro zone just as fears of a Greek exit fade.

Although small compared to the rest of the euro zone economy, Cyprus's attempts to secure international aid have been bedevilled by concerns that the island is unlikely to be able to pay back a loan that dwarfs the size of its economy.

Anastasiades said recently speculated options to make debt manageable - from a sovereign debt writedown to imposing losses on depositors - were out of the question.

"Not only do I completely rule it out, I would consider it a devastating disaster to the economy," he said in a book-lined office, adorned by photos of his daughters and grandchildren.

"That would be a punitive measure, not a measure to save (Cyprus)."

Cyprus already has slapped pay cuts on an inflated public sector and tax hikes in anticipation of a bailout. Anastasiades said he did not favour conditions which were overly harsh.

"Our intention is to faithfully meet a loan agreement which will not provoke upheaval, or (include) unfair conditions from a negotiation made in haste under the pressure of time," he said.

[Reuters]

ekathimerini.com , Friday February 22, 2013 (11:35)  
Disabled convicts to be freed early
Greek energy minister starts two-day visit to Russia on Monday
Opposition tells Tsipras to get control of his party
Vitsentzos Kornaros passenger ferry finally on its way
Fitch downgrades Greece amid bailout uncertainty
Ratings agency Fitch has downgraded Greeces sovereign rating amid growing uncertainty over the new government's pledge to overhaul reforms needed to restart bailout loan payments and avoid d...
Bank accounts continue to bleed
Pressures on Greek bank deposits have continued in March, with sector officials estimating that households and enterprises have withdrawn a net 3 billion euros in the first weeks of this mon...
Inside Business
BASKETBALL
Greens live dangerously in Istanbul
Panathinaikos played with fire in Istanbul, but still managed to beat Galatasaray 86-84 on Friday and climb to the third sport of its group two games before the end of the Euroleague top-16....
SOCCER
Greek federation backs injured Holebas
The Greek soccer federation on Friday insisted that international defender Jose Holebas had been dropped from team training in Austria because of injury and not for any other reason. Media r...
Inside Sports
COMMENTARY
Lets change the subject
Lets talk about the weather. The cloudy skies, the rain, storms and humidity, the overall heavy atmosphere. Its better to think of that than politics and politicians, whatever cuts they ma...
EDITORIAL
Too little, too late?
Many of the measures that are rumored to comprise part of the list that the Greek government is expected to submit to the European Commission, European Central Bank and the International Mon...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Disabled convicts to be freed early
2. Greek energy minister starts two-day visit to Russia on Monday
3. Opposition tells Tsipras to get control of his party
4. Vitsentzos Kornaros passenger ferry finally on its way
5. Foreign laborer dies after falling from 3rd floor of Iraklio building
6. A 5.3 Richter quake rattles area between Crete and Kasos
more news
Today
This Week
1. Fitch downgrades Greece amid bailout uncertainty
2. Let's change the subject
3. Opposition tells Tsipras to get control of his party
4. Disabled convicts to be freed early
5. Five arrested over debts to the state
6. Too little, too late?
Today
This Week
1. Next Monday is D-Day for state funds
2. EU asks Greece for more reforms to speed talks on bailout
3. PM faces Merkel amid race to detail reforms
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Looking at the Chinese model
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.