The Cyprus Ministry of Finance has announced that a revised loan
agreement between the governments of the Republic of Cyprus and the
Russian Federation was signed in Moscow by the Cypriot Minister of
Finance Harris Georgiades and Russian Deputy Finance Minister
Sergey Storchak on 12 September 2013.
In 2011 Russia lent Cyprus €2.5 billion, repayable in 2016
and with an interest rate of 4.5 per cent per year. Russia has
agreed to restructure the loan, which is now repayable by eight
half-yearly installments between the years 2018 and 2021 inclusive,
with the interest rate reduced to 2.5 per cent per year. The
revision of the terms of the loan saves Cyprus €50 million per
year in interest charges and extends the public debt repayment
schedule.
The Cyprus Minister of Finance expressed his government's
gratitude and appreciation for the positive response of the Russian
government, and his government's commitment to further
improving the excellent political and economic relations between
the two countries.
The successful restructuring of the loan marks another milestone
on the road to rehabilitation of Cyprus's public finances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
