Saturday Jul 26, 2014 Search
Weather | Athens
32o 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)  
SME minibonds to bypass bank lending
Fitch upgrades Greek banks’ bond programs
Tanzania´s central banks takes over FBME
Trade deficit grows 9.5 pct in Jan-May
Government to push troika for concessions as pressure to meet pledges intensifies
Talks between the coalition leaders last week led to them finalizing the requests that Athens will make regarding the easing of adjustment measures when the troika returns to Greece but Euro...
New Democracy firing staff as it slashes its expenses
New Democracy has begun firing staff from its party headquarters on Syngrou Avenue in Athens as it tries to rein in its spending. Kathimerini understands that 10 members of staff lost their ...
Inside News
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
SOCCER
Olympiakos downs AC Milan 3-0 in friendly
Greek champion Olympiakos defeated Italy's AC Milan 3-0 late on Thursday in a friendly match that launched the International Champions Cup in Canada and the US. The result, with goals from A...
Inside Sports
COMMENTARY
Concrete measures
The government’s decision to submit draft legislation on key environmental issues during the Parliament’s summer session has raised a fair amount of controversy. Most prominent are the bills...
EDITORIAL
Education needs skills
The Education Ministry has been somewhat unfortunate over the past two years. Other than the myriad problems they have already faced, the politicians who have been appointed to run it contin...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Government to push troika for concessions as pressure to meet pledges intensifies
2. New Democracy firing staff as it slashes its expenses
3. Deadline for Commission successor is looming
4. Cypriot president to meet Greek PM during Athens visit
5. Two killed as single-engine plane comes down outside Sparta
6. Cretan priest missing since early July found dead in ravine
more news
Today
This Week
1. Concrete measures
2. Fitch upgrades Greek banks’ bond programs
3. Tanzania's central banks takes over FBME
4. Education needs skills
5. SME minibonds to bypass bank lending
6. New Democracy firing staff as it slashes its expenses
Today
This Week
1. Greece seen in third bailout as bonds not enough, economists say
2. Climber dies in Mount Olympus fall
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Unequal after death
5. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
6. Quadriplegic woman on life support 'dies due to unpaid power bills'
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.