Cyprus May Seek Foreign Aid Equal to GDP

© Sputnik / Mikhail Kutuzov / Go to the mediabankCyprus May Seek Foreign Aid Equal to GDP
Cyprus May Seek Foreign Aid Equal to GDP          - Sputnik International
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Cyprus may seek foreign loans worth 10.6-18.4 billion euros ($13-22.6 billion) to 2016, equaling up to 100 percent of the island nation’s gross domestic product, the Athens News Agency reported on Thursday, referring to a report compiled by UK-based Barclays Bank.

Cyprus may seek foreign loans worth 10.6-18.4 billion euros ($13-22.6 billion) to 2016, equaling up to 100 percent of the island nation’s gross domestic product, the Athens News Agency reported on Thursday, referring to a report compiled by UK-based Barclays Bank.

The loans are required to repay Cyprus’s 6.1 billion euro ($7.5 billion) external debt and also recapitalize local banks. The Cypriot banking system was hit hard by the eurozone's spiralling sovereign debt crisis after local banks had to write-down billions of euros in “voluntary” Greek debt restructuring.

Cyprus officially applied to the European Union and the IMF for financial aid in late June but the island nation and creditors have not yet agreed on the amount of loan cash needed or the austerity measures it needs to put in place.

The Cypriot government has said it hopes to get extra loans from Russia to avoid tight austerity measures.

Russia has already granted Cyprus 2.5 billion euros worth of low-interest loans, but has not yet decided on whether to lend any more cash.

 

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