Cyprus receives second part of loan from Russia

The second installment, worth 1,32 billion euro, of a 2.5 billion-euro loan from the Russian Federation was received on Thursday by the Republic of Cyprus, to enhance the public sector's cash flow and cover the Republic's financing needs for 2012.

According to an official press release, issued by Ministry of Finance, the first installment, worth 590 million euro was received at the end of 2011 and the third and final installment (590 million euro) will be received at the end of March 2012.

Finance Ministry noted that part of the loan will be used for repaying Cyprus bonds that expire within the next months.

“The Ministry of Finance expresses its full satisfaction for the implementation of the Loan Agreement between Cyprus and Russia”, the announcement concluded.

The final agreement for the loan was signed on December 23, by the Deputy Minister of Finance of the Russian Federation Sergey Storchak on behalf of the Government of the Russian Federation and by the Minister of Finance Kikis Kazamias on behalf of the Government of the Republic of Cyprus.