Cyprus bailout edges closer

Cyprus Finance Minister Vassos Shiarly said on Monday talks with officials from the euro area, European Central Bank and International Monetary Fund on funds for the country are at an ''advanced stage'' and he expects a first draft of an accord at the so-called troika's next visit. Shiarly, as reported by Bloomberg, said the country's shortfall this year would be around 4.5% of GDP, and may fall to 3.5% of GDP after some budget measures are enacted. He spoke to reporters in Nicosia in comments televised live on state-run RIKSAT. Cyprus, which concluded in 2011 a 2.5 billion euros 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.