(ANSAmed) - NICOSIA, JUNE 18 - Russia is considering a loan
of five billion euros to Cyprus, Cypriot media report quoting
Russian daily Nezavisimaya Gazeta that is citing an advisor to
the Central Bank chief Sergei Ignatiev. The Russian daily says
that it's also possible that a lower amount could be granted,
quoting adviser Pavel Medvedev. Interfax has reported that the
Cypriot authorities appealed for a loan of five billion amid an
urgent recapitalisation drive to save Laiki Bank from failing
ECB stress tests at the end of June. Cyprus has been shut out of
international borrowing markets because of high costs after a
series of downgrades by international rating agencies. It has
already turned to Russia for a 2.5 billion-euro loan at 4.5%
interest per year. The government is also considering applying
to the EU for a bailout to cover Laiki Bank's 1.8 billion-euro
recapitalisation needs. The bank, along with other Cypriot
lenders, is heavily exposed to the Greek market and suffered
losses in the billions of euros after the Greek debt haircut. So
far, there is no confirmation of either option, and another
report from newswire DPA says that the Russian foreign ministry
has not yet received a formal request from Cyprus. (ANSAmed).
