Eurozone finance ministers to ratify Cyprus' first bailout tranсhe

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Cyprus bailoutOn Monday Eurozone finance ministers will ratify the agreement reached at the technical level for the disbursement of Cyprus’ first tranche of €3 billion out of the €10 billion EU bailout loan. There will be a first review of the course of the Cyprus aid programme at the meeting on Monday, while a political decision on the disbursement of the first €3 billion will be taken, a senior Eurozone official said yesterday in Brussels. He also said that the priorities were clear and included the restructuring of banks and the gradual lifting of restrictions on capital movement. He added that the easing of restrictions and administrative formalities had gradually begun. The restrictions will be permanently cancelled with the completion of the restructuring of the banks. The official further said that with a letter sent to the Cyprus government, Moscow had confirmed that the terms of the €2.5 billion loan had changed ‘in the direction we expected’. The interest rate for the €10 billion financial assistance loan to Cyprus is set at around 2.5 per cent and is repayable over a 12-year period after a grace period of a decade. The bailout deal needed to be ratified by six national parliaments and the Eurogroup.