Cyprus expecting Russia to give loan without conditions
It is a potentially embarrassing issue for the EU since Cyprus took over the EU presidency with an official ceremony in Nicosia attended by the heads of the all institutions.
The island, which has strong links with Russia and a substantial Russian population, borrowed €2.5bn from Moscow last year to tide it over the year.
But the exposure of Cypriot banks especially to Greece has turned the normally good economy of the island into a near disaster.
Cyprus has not said how much it is looking for, but it is understood to be in the region of €10bn, more than half the country’s annual GDP of €18bn. Cyprus owned more than 10% of Greece’s entire banking system with lenders suffering about a €6bn loss as a result of restructuring Greek debt earlier this year.
President Christofias, the only Communist head of state in the EU, when asked about the approach to Russia, said, “I do not understand why it’s wrong”. There was a tradition of friendship and they were ready to assist without conditions at a certain rate, he said, adding, “We expect a positive reply”.
