Business

First installment of Cyprus loan expected in mid-May

by fm

25th April 2013

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The first installment of the loan to Cyprus will be worth €2 million and will be given in mid-May, while the second installment of €1 million will be sent at the end of June, according to sources in Brussels.

Referring to the European Stability Mechanism procedure, the same European sources noted that for the second installment it would not be necessary to evaluate the course of the programme, and that this would begin in September before the disbursement of each installment.

From the total of €10 billion, of which €9 billion will come from the Eurozone and €1 billion from the IMF, €2.5 billion will be allocated for the capital needs of the Cypriot banks, excluding Laiki Bank and the Bank of Cyprus, €1 billion will be allocated for the debt, and €3.4 billion for budget needs.

The repayment of the loan will begin after ten years and the interest rate, based on current calculations, will be around 2%.