Moscow is following developments in Cyprus economy

Russia’s Ambassador to Cyprus Stanislav Osadchiy has said that Moscow is following with “great interest” the developments in the Cypriot economy following Eurogroup’s decisions for Cyprus back in March.

The Russian Ambassador was speaking to the press following his meeting with the General Secretary of the Ecological and Environmental Movement, Cyprus` Green Party, George Perdikis, held here Wednesday.

He said that during the meeting they discussed issues of mutual interest while he was briefed by his interlocutor on the latest developments in the Cyprus problem and the economy.

He noted that Moscow is following with “great interest” the developments in the Cypriot economy in this critical, as he described it, period following the haircut on unsecured deposits.

Excluded from international capital markets since April 2011, Cyprus applied for financial assistance from the EU bailout mechanism, as its two largest banks, Bank of Cyprus (BoCY) and Cyprus Popular Bank (CPB) requested state support following mammoth losses as a result of the Greek sovereign debt haircut.

In late March, the authorities and the Troika (EC, ECB, IMF) agreed on a €10 billion financial assistance package which featured an unprecedented haircut on uninsured deposits to recapitalize BoCY, whereas CPB was wound down.