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Spokesman said deal is close
CYPRUS IS very close to striking a €2.5 billion loan deal with Russia, government spokesman Stephanos Stephanou said yesterday.
Asked whether the loan will be subject to a bilateral agreement, Stephanou echoed the remarks made by Finance Minister Kikis Kazamias on Friday. Kazamias, talking after a cabinet meeting, said that the government is negotiating a loan from Russia with favourable conditions aimed at refinancing Cyprus’ maturing debt and plugging a deficit hole. Kazamias said the funds will also be used to boost the economy’s liquidity.
Cyprus has around €1.0 billion in debt maturing in the first two months of 2012, and its current high yields have fanned speculation that the island could be a candidate for an EU bailout because its borrowing options seem limited.
Stephanou also commented on the second austerity package due to be tabled in parliament next week. Asked whether the government is having second thoughts about proposed cuts on civil servants’ 13th salary, Stephanou said that public discussions of the issue should be limited while political parties and social partners are still negotiating terms.
“Public discussions often prove counterproductive in such situations, and we want to conclude with the matter as soon as possible to be able to move forward,” Stephanou said.
He was also asked to comment on information leaked yesterday that during its meeting on Friday the cabinet gave Kazamias the green light to move towards implementing a total of €200 million cuts from allowances. Stephanou denied that such a thing took place but repeated the necessity of targeting social allowances as well in the effort to consolidate the country’s finances.
Asked whether the loan will be subject to a bilateral agreement, Stephanou echoed the remarks made by Finance Minister Kikis Kazamias on Friday. Kazamias, talking after a cabinet meeting, said that the government is negotiating a loan from Russia with favourable conditions aimed at refinancing Cyprus’ maturing debt and plugging a deficit hole. Kazamias said the funds will also be used to boost the economy’s liquidity.
Cyprus has around €1.0 billion in debt maturing in the first two months of 2012, and its current high yields have fanned speculation that the island could be a candidate for an EU bailout because its borrowing options seem limited.
Stephanou also commented on the second austerity package due to be tabled in parliament next week. Asked whether the government is having second thoughts about proposed cuts on civil servants’ 13th salary, Stephanou said that public discussions of the issue should be limited while political parties and social partners are still negotiating terms.
“Public discussions often prove counterproductive in such situations, and we want to conclude with the matter as soon as possible to be able to move forward,” Stephanou said.
He was also asked to comment on information leaked yesterday that during its meeting on Friday the cabinet gave Kazamias the green light to move towards implementing a total of €200 million cuts from allowances. Stephanou denied that such a thing took place but repeated the necessity of targeting social allowances as well in the effort to consolidate the country’s finances.
Source: www.cyprus-mail.com
September 11, 2011
September 11, 2011