Monday September 1, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Russia: Loan to Cyprus too risky for just one creditor

Russia has no plans to grant a 5 billion-euro loan requested by Cyprus because the risks are too great to be assumed by a single creditor, Deputy Finance Minister Sergei Storchak said on Monday.

“We have no specific plans or instructions to do so,” Storchak said in an interview in Moscow. “It’s obvious that no single creditor can work with Cyprus alone,” he said. “Anyone who steps up on an individual basis to finance that country’s government or to help recapitalize its banks would be taking an enormous risk.”

Cyprus, whose public debt is forecast to reach 89.7 percent of gross domestic product this year, in late June became the fourth euro-area nation to request a financial rescue since a 2010 bailout of Greece. In addition to seeking aid from its euro-zone partners and the International Monetary Fund, Cyprus asked Russia for a fresh loan after borrowing 2.5 billion euros last year.

A bailout deal with the euro area and IMF will be signed by February 12, said Thomas Wieser, who heads the group of officials that prepare meetings of euro area finance ministers.

Cyprus may need as much as 17.5 billion euros, almost the size of its economy, to pay its bills and recapitalize banks, Finance Minister Vassos Shiarly said on November 22.

Russia would consider giving financial assistance to Cyprus as a part of international rescue package after the euro area takes a unified stance on aiding the island, President Vladimir Putin said last week in Brussels.

“While we don’t exclude taking part, as the president said, we’re not major creditors,” said Storchak, who oversees Russia’s debt and international financial cooperation. If a group of lenders were formed to help Cyprus, it would be based on Cyprus’s membership in the European Union, he said.

Russia’s current loan to Cyprus, which matures in 2016, was intended to help communist Cypriot President Demetris Christofias stabilize his government’s finances. Cypriot lawmaker Stavros Evagorou said on October 13 that the government was seeking to extend the loan.

Bilateral financial lending to foreign states should be treated as a commercial transaction, where the creditor expects to be repaid, Storchak said. More often, countries seeking financial assistance are in need of grants, though politicians are reluctant to say so openly, he said.

[Bloomberg]

ekathimerini.com , Wednesday December 26, 2012 (14:38)  
Greek PM vows to bring down unemployment
Greek economy shrinks at slowest pace since late 2008
Prospect of Greek grand prix back on the agenda; huge investment needed
Juggling lighter tax burden and fiscal targets
Hardouvelis optimistic ahead of Paris meeting
The Greek government has stepped up its efforts in advancing the structural measures it has committed to, Finance Minister Gikas Hardouvelis said Monday ahead of a two-day meeting with troik...
Erdogan visits Turkish-occupied Cyprus
Recep Tayyip Erdogan was on Monday expected in Turkish-occupied northern Cyprus in his first official visit as new Turkey President. Erdogan, who was sworn in as his country's first popularl...
Inside News
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
SOCCER
Tough draw for Greek sides in Europa League group stage
Following Thursday night’s high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
Inside Sports
ANALYSIS
EU’s three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Poland’s prime minister, faces three big challenges: the sta...
COMMENTARY
A great president
I fully understand the country’s need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek PM vows to bring down unemployment
2. Hardouvelis optimistic ahead of Paris meeting
3. Erdogan visits Turkish-occupied Cyprus
4. Greek economy shrinks at slowest pace since late 2008
5. Laid-off cleaners to protest outside police headquarters
6. Protesters interrupt blessing ceremony at University of Athens
more news
Today
This Week
1. A great president
2. Excavation work at Amphipolis reveals section of marble mosaic floor
3. Don’t feed the zombies
4. Greek officials meet to fine tune strategy for Paris talks with troika
5. Deputy Education Minister Koukodimos resigns
6. Protesters interrupt blessing ceremony at University of Athens
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. The battle against progress
3. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.