Russia hasn’t ‘yet agreed to extend Greek Cyprus loan’

ISTANBUL - Reuters

Russia has not yet agreed to extend the terms of its 2.5 billion euro ($3.2 billion) loan to Greek Cyprus, Russia’s deputy finance minister said.

“There was a request ... to change the duration of the loan, we promised to think about it,” Sergei Storchak told reporters on May 11, on the sidelines of the European Bank for Reconstruction and Development annual meeting held in Istanbul, speaking through an interpreter. “This was a kind of promise - if somebody wants to see it as a done deal, there is nothing I can do about it.”

Greek Cyprus’ foreign minister said this week that Russia had agreed to extend the terms of the loan as part of its participation in the bailout of the indebted Mediterranean country.

A document prepared by international lenders also reported that Russia agreed to extend the maturity of the loan to Greek 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
percent.