Friday October 31, 2014 Search
Weather | Athens
18o C
13o 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)  
Disposable income of households fell 10.3 pct in one year
Banks unhappy with bad loans bill
State debtor numbers grew in September
Reform plan among conditions
Ministry swap halts talk of reshuffle as reforms eyed
Prime Minister Antonis Samaras on Friday appointed Nikos Dendias as defense minister, replacing outgoing Dimitris Avramopoulos, who assumes the European Commission’s immigration portfolio ne...
Turkish-Greek cooperation in Aegean helps stem flow of migrants
Closer cooperation between Greek and Turkish coast guard authorities has led to 11,000 undocumented migrants being prevented from entering Greek borders and returned to the neighboring count...
Inside News
BASKETBALL
Spanoulis played Zeus for Olympiakos against Neptunas
Captain Vassilis Spanoulis helped Olympiakos narrowly avoid an upset on Friday as it defeated Euroleague debutant Neptunas Klaipeda 85-81 in overtime in Lithuania to preserve its perfect sta...
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
EDITORIAL
Findings raise eyebrows
An investigation into money transferred to foreign banks by civil servants since 2010, when Greece’s brutal debt crisis erupted, has come up with some striking findings. The checks, which we...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Spanoulis played Zeus for Olympiakos against Neptunas
2. Disposable income of households fell 10.3 pct in one year
3. Banks unhappy with bad loans bill
4. State debtor numbers grew in September
5. Reform plan among conditions
6. Ministry swap halts talk of reshuffle as reforms eyed
more news
Today
This Week
1. Man shot dead, woman injured in Vathis square attack
2. Archaeologists find underground vault at Amphipolis tomb
3. Cyprus’s Georgiades bets on economy for Irish-style bailout exit
4. Greek retail sales rise for third month in a row
5. Germany’s 10-year bonds decline before euro-area inflation data
6. New defense minister to be appointed without reshuffle
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.