Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Russia has agreed to restructure Cyprus's 2.5bln-euro loan, says Putin

Russia agreed to restructure a 2.5 billion-euro ($3.3 billion) loan granted to Cyprus in 2011, bowing to request by the European Commission, President Vladimir Putin said.

“We are making our own contribution” to help the island, Putin told reporters today at a joint briefing in Hanover with German Chancellor Angela Merkel. “At the request of the European Commission, we decided to restructure this debt.”

Russia, which rejected a bid from Cyprus for additional financial assistance last month, has bristled at suggestions that it was responsible for bailing out the euro member as politicians from nations including Germany alleged that Cyprus was used to launder illegal Russian money. Restructuring terms sought by Cyprus would amount to a 10 percent writedown of the loan, according to Russian Finance Minister Anton Siluanov.

Russian companies and individuals have an estimated $31 billion in Cyprus, according to Moody’s Investors Service. The bailout of the cash-strapped nation will probably provoke an outflow of Russian money back home, Putin said last week.

Cyprus, which accounts for 0.2 percent of the euro region’s economy, was forced to inflict unprecedented losses on uninsured depositors and senior bondholders as part of the 10 billion euro rescue of its financial system.

The east Mediterranean nation has officially asked Russia to extend its 2.5 billion-euro loan by five years to 2021, the Nicosia-based Finance Ministry said Jan. 10. The euro area’s third-smallest economy borrowed the funds in December 2011 and has also sought an additional 5 billion euros from Russia.

Agreeing to a five-year extension and a cut in the interest rate from 4.5 percent to 2.5 percent would amount to “decent support” for Cyprus, Siluanov said last month. Putin didn’t disclose the terms of a new credit agreement with Cyprus.

The Russian leader, who berated an earlier rescue plan that affected insured savers as “unfair, unprofessional and dangerous,” urged European authorities today to avoid imposing a levy on bank deposits again.

“We assume that it’s a unique case, that such means of exiting the crisis in problem areas of the euro region won’t be used again,” he said.

[Bloomberg]

ekathimerini.com , Monday April 8, 2013 (13:41)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greece’s lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Banks need to step up
3. Samaras pledges action after flash floods in Athens
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Nicosia says reforms are bringing results
6. No court hearings for civil cases
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.