Cyprus’ request for a multi-billion loan from the Russian Federation is still pending, President of the Republic Demetris Christofias has said, pointing out however that even if the loan is granted, it may not be enough.

Speaking during a dinner hosted by the National Federation of Cypriots in the UK on Monday, the President noted that everybody – EU Commission and IMF – has acknowledged that had it not been for the need for bank recapitalization, Cyprus would not have had to address itself to any bailout mechanism.

“We had no choice but to invite the Troika (EU Commission, IMF, European Central Bank) delegation, because our banks needed to be recapitalized”, he said.

The President said he was not concerned about the banks but about the people who had placed their deposits in the banks.

The government, he said, does not believe that the Troika has come to Cyprus to impose its own terms. “It is here to have a dialogue with us, we have our own arguments to put forward,” he added.

“We cannot have anybody arriving in Cyprus to tell us what the economic situation is. We may have a different assessment of the economic situation in Cyprus and of how problems will be resolved. That is why I have asked the Troika to continue the dialogue until September,” he said.

A Troika delegation wrapped up its contacts on the island last week, following Cyprus’ request for an EU bailout.

The delegation held contacts with the government, the trade unions, semi-governmental organizations, political parties and other authorities and will be back in September. The Finance Ministry has announced that consultations will continue via teleconferences in August.

The Troika was in Cyprus early July as well on a fact finding mission for a close scrutiny of the banking sector, which has been severely hit by Greek sovereign debt haircut and over-exposure to the Greek economy, as well as the refinancing requirements of the government.

Cyprus requested a loan from Russia to support its banking sector. The Russian government last year gave Cyprus a three-year loan of 2.5 billion euros. The second request for a loan from Russia is said to be around 4.5 – 5 billion.