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Image header Agence Europe
Europe Daily Bulletin No. 10637
ECONOMY - FINANCE - BUSINESS / (ae) economy

Russia may give aid to Cyprus this week

Brussels, 19/06/2012 (Agence Europe) - Cyprus is hoping to negotiate financial aid from Russia this week, reported the New York Times on Monday. One of the smallest economies in the eurozone, Cyprus needs €1.8 billion (10% of GDP) by the end of the month to bail out the country's second largest bank, Cyprus Popular Bank. Cypriot banks are suffering from the write-down of Greek debt, which has cost them €3 billion and the country has not been able to roll over debt on the money markets for the past year. Because of fears that the EU would impose strict austerity measures and make it increase taxes (currently among the lowest in Europe), the governor of the Cypriot Central Bank, Panicos Demetriades, is looking for a better deal. Analysts suggest Russia might lend Cyprus around €5bn, in addition to the €2.5bn loan granted by Russia last year. (EL/transl.fl)

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