Cyprus Airways signs 78 m. euro loan

Cyprus Airways and the Hellenic Bank signed a loan for 78 million euro, to help the airline pay off previous loans and improve its finances. Finance Minister Michalis Sarris who was present at the signing ceremony described the deal us “the beginning of a long effort to improve the economic results of the airline”, pointing out that the government has high expectations of the CY Board of Directors.
The minister said the European Union demands to be kept continuously informed about the progress of the CY restructuring plan and called on the Board and the staff to focus their attention on this direction.
Executive Chairman of the Board Kikis Lazarides said this was a very good agreement and expressed hope that in 2008 the airline will reverse the negative trend of the past few years which registered heavy losses and begin a profitable course.
“We shall pay off the previous loan of 51 m. euro and before the end of the year we shall issue new capital worth 14 m. Cyprus pounds,” he said.
The top Executive Manager of the Hellenic Bank Makis Keravnos said the ten-year loan bears an interest of Euribor+0,04 per cent and repayment in 20 six-monthly installments.
He said Cyprus Airways is important for the local economy and noted that the airline is undergoing an overhaul to help improve its finances and structure.