Topic: Cyprus Bailout
ATHENS/MOSCOW, September 12 (RIA Novosti) – Russia signed an agreement with Cyprus on Thursday to restructure Nicosia’s 2.5 billion euro ($3.3 billion) debt, a Russian deputy finance minister told the Prime news agency.
Russian Deputy Finance Minister Sergei Storchak said the document was signed during a visit to Moscow by Cyprus Finance Minister Charis Georgiadis.
The NewsIt Cyprus news website said the document envisaged a 2.5 percent interest rate starting from March 2013 and eight semi-annual payments starting from 2018 to pay off the debt.
The loan was obtained by the previous Cypriot government in 2011.
“The finance minister expressed his appreciation and gratitude for the Russian government’s positive answer to the request from Cyprus and hopes that the two states would further develop their excellent political and economic relations,” NewsIt said.
Georgiadis will now head to Lithuania, where the Eurogroup is expected to approve the second, 1.5 billion euro ($2 billion) installment of its loan to Cyprus.
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