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Cyprus And Russia (Putin) Fail To Agree On Loan

From Reuters:

Cyprus and Russia fail to agree on loan

By Lidia Kelly, Katya Golubkova | March 20, 2013

MOSCOW (Reuters) – Russia and Cyprus failed to agree on a loan deal at talks on Wednesday which Nicosia hoped would help it though its financial crisis.

Why doesn’t Cyprus try to get a loan from China? They will lend money to anybody.

Cypriot Finance Minister Michael Sarris said after talks with Russia’s finance minister, Anton Siluanov, that he would stay on in Moscow for as long as is needed to try to secure an agreement.

Is he holding himself hostage?

Cyprus has asked Russia for a five-year extension of a loan of 2.5 billion euros ($3.22 billion) that matures in 2016, as well as a reduction in the 4.5 percent rate of interest.

To which the Russians laughed heartily. A loan extension and a reduction in interest?

Cyprus has also asked Russia to loan it a further 5 billion euros, the Russian finance ministry says, but Moscow has not announced a decision on the request.

"We had a very honest discussion, we’ve underscored how difficult the situation is," Sarris told reporters. "We’ll now continue our discussion to find the solution by which we hope we will be getting some support."

Before the talks with Siluanov, Sarris said he was hopeful of "a good outcome"…

There will be no ‘good outcome’ here for Cyprus. At the very least, Russia will demand rights to the gas and oil reserves off their coast.

Moscow is angry that the European Union did not consult it over a proposed levy on banking deposits held in Cypriot banks as part of a 10-billion-euro bailout of the Mediterranean island. Late on Tuesday, the Cypriot parliament overwhelmingly rejected the proposed levy.

In fact the Cypriot parliament rejected the EU proposal unanimously.

Sort of like the way all of Obama’s budget proposals have been rejected unanimously.

This article was posted by Steve Gilbert on Wednesday, March 20th, 2013. Comments are currently closed.

3 Responses to “Cyprus And Russia (Putin) Fail To Agree On Loan”

  1. Cyprus has no industry that would allow it to pay back any loan. According to financial records, tourism, banking, and a little shipping are all they have. Tourism and shipping are in a recession, and the banks are now likely to collapse.

    They have oil and gas offshore. But there’s that niggling ‘green’ movement they’ll have to deal with; the same ‘green’ movement that’s pushed most EU nations into no-growth regimes and bankruptcy.

  2. Helena

    Russia has been after a warm water port for centuries. What do you want to bet the minute Cyprus accepts Russia’s gracious offer, they sprout a Russian Navy installation?

  3. Helena

    Which would also be convenient for their good friend Syria.


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