Cyprus seeks re-adjustment of some MOU provisions, President says

Cyprus does not seek to renegotiate the terms of a €10 billion bailout agreed with its international lenders but to re-adjust some aspects of the programme, President of the Republic Nicos Anastasiades has said.

The President`s remarks came a few days before the EU Summit, where he said he will raise the issue of practical problems stemming from the implementation of the MOU agreed between Cyprus, and the European Commission, the European Central Bank and the International Monetary Fund, known as the Troika.

President Anastasiades has sent a letter to Cyprus` international lenders outlining the problems arising from the implementation of the MOU.

"We don`t seek to renegotiate the MOU but to re-adjust some of its provisions," President said speaking to the press during an event organized by the EU Irish Presidency to Cyprus.

He said that he will meet with German Chancellor Angela Merkel on the sidelines of the Summit, adding that he will seek a meeting with ECB Governor Mario Draghi "so that the problems facing the Cypriot economy will be understood."

On March 25, Cyprus agreed with the European Commission, the European Central Bank and the International Monetary Fund, collectively known as the Troika, on a €10 billion bailout, which included the winding down of Cyprus Popular Bank the island`s second largest bank, whose assets and employees were absorbed by Bank of Cyprus (BoCY), the island`s largest lender, which is currently undergoing a major restructuring.

In his letter to Cyprus` lenders, Anastasiades said that the bail-in was implemented without careful preparation and underlined that as a result the economy is driven into a deep recession, leading to a further rise in unemployment and making fiscal consolidation all the more difficult.