Extension of the Russian loan still not secured

By in

Extension of the Russian loan still not secured Russia has not yet agreed to extend the terms of its 2.5 billion EUR loan to Cyprus, Russia’s deputy finance minister Sergei Storchak said on Saturday. ‘There was a request to change the duration of the loan, we promised to think about it’, Sergei Storchak told reporters. ‘This was a kind of promise – if somebody wants to see it as a done deal, there is nothing I can do about it.’ He added that any changes to the terms of the loan would need parliamentary ratification. ‘For that to be a done deal, we need to have it on paper.’ Cyprus’ foreign minister said last week that Russia had agreed to extend the terms of the loan as part of its participation in the bailout. International lenders also prepared the document stating that Russia agreed to extend the maturity of the loan to Cyprus by two years and cut the interest rate. Russia lent Cyprus 2.5 billion euros in 2011 for five years, with an annual interest rate of 4.5 per cent. Extending the loan and reducing the interest would ease debt servicing costs for Cyprus and help it recover after the banking crisis.