Cyprus` Council of Ministers approved on Wednesday an agreement with the Russian Federation for a 2.5 billion euro loan with a yield of 4.5%, Government Spokesman Stephanos Stephanou announced.

Speaking to the press after a Council of Ministers meeting, Stephanou said the government authorized the Finance Minister to take all appropriate actions for the implementation of the agreement as soon as possible.

The loan has a nominal value of 2.5 billion euro with a nominal annual yield of 4.5% and valid for 4.5 years. Stephanou said the Cypriot government has the option to pay the loan before its maturity date.

According to the Spokesman, the implementation of the agreement combined with the government measures for medium-term fiscal stability, are expected to create important advantages for Cyprus.