Cyprus is in talks with Russia and China for loans of about 10 billion euros, Athens news group reported on Friday quoting Cypriot Government orator Christos Christofides.
“We are holding high-level negotiations with Russia and watchful for an answer from China,” Christofides said.
Last year, Russia concluded to extend 2.5 billion euros in loans to Cyprus, that amounts to about 10 percent of a republic’s GDP.
Cyprus needs a supports to recapitalize internal banks that are underneath highlight due to a eurozone debt crisis. International rating group Moody’s cut a ratings of Cyprus’s dual largest banks, Bank of Cyprus and Hellenic Bank in June, and put a island’s third largest bank, Cyprus Popular Bank, on examination with a probable downgrade.
Cypriot banks’ bearing to Greek investments is estimated during 23 billion euros, that exceeds Cyprus’s 2011 GDP of 17.3 billion euros.
The troika of general lenders comprising a European Commission, European Central Bank and a International Monetary Fund is expected to revisit Cyprus subsequent week for negotiations on probable loans.