Cyprus FM: Russia agrees to extend loan to his country

Russia has agreed to extend the loan earlier issued to Cyprus, its Foreign Minister Ioannis Kasoulides said. He noted that Germany had earlier requested Russia’s participation in the resolution of Cyprus’ financial problems. "And you remember, Berlin was asking for Russian participation (in Cyprus’ problems),” Kasoulides said after a talk at the Brookings Institution think tank in Washington. “And their participation is to prolong the debt,” he added. The 2.5 billion euro loan was issued in 2011 for 4.5 years at 5 percent per annum. Several days ago the Cyprus Ministry of Finance sent a letter to the Russian government, asking it to extend the terms of the loan and lower the interest rate to 2.5 percent. Nicosia is planning to make payments in several portions. In April, Russian Finance Minister Anton Siluanov said in Washington that “Russia would like to consider participation in the Cyprus talk on a permanent basis.” “Since we are a creditor and we have agreed to improve the terms of loan repayment, we would like to get support for our proposals on the resolution of Cyprus’ problems,” the minister said.