Cyprus may seek foreign loans

Cyprus may seek loans worth USD13-22 billion to 2016, a report by Barclays bank said. According to Athens News Agency, the loans are required to repay Cyprus’s USD7.5 billion external debt and also recapitalize local banks. Christos Christofides, a government spokesman, had expressed hopes earlier that ongoing talks with Russia would yield an agreement over a new loan for his country. The spokesman expected a great difference between Russian preconditions, and those placed by the EU for European Stability Mechanism (ESM) loans. Cyprus had previously received a 2.5 billion-euro loan, but it has not completely fulfilled its need to ask for aid from the EU, as it is estimated to require 10 million euros incurring heavy losses due to the restructuring of Greek sovereign debt.