No reply from Moscow as regards loan to Cyprus

Government Spokesman Stephanos Stephanou clarified Tuesday that Moscow has not taken a decision on Cyprus’ request for a new bilateral loan yet and that no reply has been conveyed to Nicosia as of now.

Stephanou’s statements followed a comment to CNA by the Russian Ministry of Finance earlier today, that no decision has been taken yet and that the Russian government is holding negotiations with Cyprus and the loan has not yet been approved.

Speaking to the press, the Spokesman noted that when Russia finally takes a decision, the State Duma has to approve it as it happened with the first loan of 2,5 billion the Russian federation granted to Cyprus in 2011. He also stressed that the conditions of the loan and the procedures to be followed, will be made available to the everyone and there will be transparency.

Asked about the negotiations to take place between the government and the Troika (Commission, ECB, IMF) as regards the memorandum on the financial assistance to Cyprus, the Spokesman said that the government is working intensely in order to be well prepared.

He also said that the government will hold talks with the political parties as well in order to safeguard the rights of the employees and the economic growth.

Cyprus which concluded in 2011 a 2.5 billion EUR with the Russian Federation, has requested a new loan agreement. Excluded from the international capital markets as of May 2011, Cyprus on June 25 applied to the EFSF for financial assistance to bailout its two main banks, Bank of Cyprus and Cyprus Popular Bank, which have been severely hit by the Greek sovereign debt haircut and to cover its refinancing needs.