Cypriot minister expects no hitches in getting bailout money

Cyprus said it does not expect any hitches in getting loan money following political backing given to a bailout deal by Eurogroup finance ministers in Dublin."I am pretty sure that the bailout deal agreed in principle will be endorsed by national parliaments and will be formally signed by the end of April," Cypriot Finance Minister Haris Georgiades told the state broadcaster over the telephone from Dublin on Saturday.In giving its backing to the bailout deal, the Eurogroup ministerial meeting in Dublin set an April 24 deadline for the loan memorandum of 10 billion euros ($13bln) to be endorsed by all country members, including seven which have to secure a parliamentary approval, Xinhua reported.Georgiades said the Eurogroup decision is a very important step in getting a first tranche of the loan money in time to meet immediate pressing needs.He did not say how much money Cyprus will need but he hinted at an amount of between 2.5 and 3 billion euros depending on actual needs.Cyprus has to pay off a 1.5 billion euro Eurobond issue maturing on June 4."I believe the scheme as a whole will prove productive," Georgiades said, adding that he will manage despite difficulties.He said that it was encouraging that European Commissioner for financial affairs Olli Rehn had stated Cyprus will not be left alone to face the fallout of a crippling haircut on bank deposits which has brought the financing system on its knees."European leaders have come to realize that a very difficult adjustment is attempted in Cyprus," Georgiades said.European Commission President Jose Manuel Barroso has said a request by Cypriot President Nicos Anastasiades' for increased development funds from Europe is quite justified.He said that solidarity with Cyprus is called for as it would be difficult to assess the impact of the attempted economic adjustment program on the real economy, which is mostly bank oriented.The haircut on major deposits in the largest lender, Bank of Cyprus, may finally reach 60 percent. Depositors in the second largest lender, Cyprus Popular Bank, which is in the process of being wound down and folded into Bank of Cyprus, are expected to get back only about 20 percent of their money after several years.Georgiades also said there have not been any changes in a plan to assess anti-money laundering practices which has been set as a pre-requisite by German and other politicians in Europe for the release of bailout funds.He said Cyprus is committed to fully apply any recommendations which will be made by auditors.