Reuters: Russia hasn't yet agreed to extend Cyprus loan

11 May 2013

Sergei Storchak, Russia's deputy finance minister, said that Russia had not yet agreed to extend the terms of its €2.5 billion loan to Cyprus.

He added that any changes to the terms of the loan would need parliamentary ratification. "For that to be a done deal, we need to have it on paper."

Cyprus' foreign minister said this week that Russia had agreed to extend the terms of the loan as part of its participation in the bailout of the indebted Mediterranean country. Russia lent Cyprus €2.5 billion in 2011 for five years, with an annual interest rate of 4.5 per cent. Extending the loan and reducing the interest would ease debt servicing costs for Nicosia and help it regain financial stability.

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