Posted on 10/09/2011 8:10:44 PM PDT by Olog-hai
Cash-strapped Cyprus yesterday (5 October) secured a massive financial loan from Russia, a country with serious financial interests on the island. Cyprus, whose president Demetris Christofias is the only Communist to lead an EU member and eurozone country, will hold the bloc's presidency in the second half of 2012.
Cyprus' Council of Ministers approved an agreement with the Russian Federation for a €2.5 billion loan with a yield of 4.5%, government spokesman Stephanos Stephanou announced, according to the Famagusta Gazette.
Since the deadly blast at Cyprus' main power station on 11 July, which wiped out 53% of electricity production, the country has been struggling to avoid bankruptcy.
Speaking to the press, Stephanou said the government authorized the finance minister to take all appropriate action to implement the agreement as soon as possible.
The deal among with the government measures for medium-term fiscal stability are expected to create "important advantages" for Cyprus, the spokesman said.
He added that the loan will enable Cyprus to cover its medium-term refinancing needs, avoiding liquidity strains on local commercial banks, as well as restore international investors' confidence and ease the rising tendencies on Cypriot bond spreads in the European secondary markets. …
(Excerpt) Read more at euractiv.com ...
the russkies are such nice folks.
/s
Niagra-falls alert. (Slowly they turn...step by step...).
Russia has only limited access to warm seas. Cyprus is one of most popular vacation spots for Russians; the prices there are in the range of $100/day.
Isn’t Cyprus a banking haven for Russian Mafiyatsi?
Cyprus is a Russian tourist destination and its opaque banking system are a major haven and transit point for cash from Russian criminals and government officials on the take.
Hardly, the price was to allow the Russians to build a new submarine and naval base there.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.