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ECONOMICS > Greek Cyprus may seek bilateral loan

NICOSIA - Reuters

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Cash-strapped Greek Cyprus has shifted its focus onto a bilateral loan instead of an EU bailout to recapitalize its second largest bank although both options are still open, media reported yesterday.

The eurozone minnow, shut out of capital markets for more than a year, must find the equivalent of 10 percent of its GDP by June 30 to recapitalize Cyprus Popular Bank if no private investor comes forward.
Bilateral lending, which the island’s finance minister has repeatedly described as “not the preferred option” is coming back to the forefront as a likely scenario.

Russia potential lender

Russia, which bailed Greek Cyprus out last year, was back in the frame as a potential lender, newspapers reported.

Efforts were underway to borrow from a third country with “more favorable terms”, Haravghi, the mouthpiece of Greek Cyprus’s ruling AKEL Communist party, reported in a front-page headline. It did not offer more details.

Asked whether the prospect of bilateral lending was distant, Finance Minister Vassos Shiarly told state TV in an interview on June 12 night; “I would say not.”

He also reiterated earlier comments that the island would not “wait until the last day” to take action to prop up the bank, either through bilateral lending or by resorting to the European Financial Support Facility.

June/14/2012

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john albay

6/14/2012 5:29:30 PM

@dorus well the people you write about are not really the friends of Turkey and we are fed up with the lies and rubbish you greek and greek lovers write in our newpapers.So you know I dont like corrupt russians,or bullying russians, I dont like the murdering arrogant zionist israelis and as for the greek cypriots who lie all day long and murdered so many of my people and twist the truth and cause trouble well what do you expect! I feel very sorry for the taxpayers of the EU who have to pay .

Chris Green

6/14/2012 12:14:25 PM

A noted BBC presenter recently described the Greek situation thus and I quote " Greece are about to be vomited out of the Eurozone like a bad kebab" This was on the BBC flagship nightly programme, News Night. I so wish had though of that line! It drew top level complaints from Athens but you know, the truth hurts. So glad that Turkish Cyprus will soon be a state of motherland Turkey!

DORUS LIVIS

6/14/2012 10:57:14 AM

John you don't see to love very much Jews, Russians and Europeans... Anyway don't be so happy about the bankruptcy option, it will be bad for all (you included)

kemal H

6/14/2012 12:35:41 AM

I am afraid its good night Vienna for the hapless Greek Cypriots, just like their bankrupt cousins in Greece they are heading for the knackers yard.
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