Cyprus’s Finance Ministry asks Russia for rescheduling €2.5bn loan

Cyprus’s Finance Ministry has asked the Russian government for reconsidering the terms of the Russian loan issued at the end of 2011, the ministry’s official has told Itar-Tass on the condition of anonymity. In the message sent through diplomatic channels the Cypriot Finance Ministry notifies the Russian leadership of completing the ratification of the memorandum on the terms of the anti-crisis program for Cyprus launched by the troika of international creditors (European Commission, the European Central Bank and the International Monetary Fund) and also of the 10-billion-euro credit agreement with them. The source said the document contained a request addressed to Moscow for launching negotiations on a revision of the 2.5-billion-euro loan Russia extended to Cyprus for 4.5 years at an interest rate of 4.5 percent. The possibility of reconsidering that inter-governmental agreement was repeatedly discussed in the context of drafting the EU-IMF anti-crisis program for Cyprus. Russian President Vladimir Putin instructed the government back last March to look into the possibility of rescheduling that loan. Russia has said more than once that it might join the efforts to extend assistance to Cyprus only after Nicosia had agreed an anti-crisis program with its EU partners. Cyprus has asked Russia to lower the interest rate to 2.5 percent and also to extend the repayment period. Also, Nicosia would like to make payments by installments. The Cypriot Finance Ministry official said his country hoped for a positive solution. He also dismissed last week’s mass media reports Russia had allegedly agreed to loan rescheduling.