The time has come for Cyprus to pay for the past mistakes

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MES3556The time has come for Cyprus to pay for the past mistakes as the Finance Minister explained yesterday. He highlighted that Cyprus could have delays in the ratification of the bailout and this might have consequences. The government needed an additional €80 million on top of an €85 million reserve- before April 24 to avoid default. The minister reiterated that there was no question of Cyprus leaving the Euro, the EU or trying to find other ways to secure the economy without the help of the European support mechanism. Abandoning the Euro would mean much higher losses for the Cypriot economy and will lead to a disaster. The minister stated: ‘Unfortunately it is time we foot the bill for the mistakes, omissions and delays of the past but we are determined to look ahead, restart the Cypriot economy and keep it inside the European family’ Russia meanwhile said it would restructure a 2011 €2.5 billion loan to Cyprus that matures in 2016. Putin, President of Russia, declared in a meeting in Hanover with Angela Merkel that they were making their own contribution and they decided to restructure the debt due to the request of the European Commission. Cyprus had requested a five year extension and a two percentage point reduction of the 4.5 per cent interest rate.