RUSSIA is reportedly close to agreeing to a second loan deal with Cyprus worth around 5 billion Euros, according to reports in the Russian media.
Cyprus needs to raise 1.8 billion Euros by the end of the month for the recapitalisation of its ailing Popular Bank (the Island’s second largest) and an additional amount of about 3 billion Euros to refinance the public debt.
Finance Minister Vassos Shiarly remained tight-lipped on the subject yesterday, refusing to speculate on where the money would come from and stating that the government would come to a decision after Sunday’s Greek parliamentary elections.
Russia, with its deep economic ties to the Island, will be looking to prevent Cyprus from turning to the EU for a bailout; a scenario that could see EU imposed reforms to the country’s tax framework result in an exodus of foreign companies from the Island.