Wednesday’s meeting in Frankfurt between Cyprus President and European Central Bank President amounts to a recognition that there are practical difficulties in certain issues regarding the implementation of the loan agreement Cyprus has signed with its international lenders, the government has said.

Asked about President Nicos Anastasiades’ meeting with Mario Draghi, Government Spokesman Christos Stylianides explained that, while in Brussels, the President discussed with Draghi issues concerning the banking sector and the latter accepted to have a meeting in Frankfurt in the presence of the Governor of the Central Bank of Cyprus and the Minister of Finance.
President Anastasiades, Stylianides said, has given instructions to draft scenarios concerning the resolution of  these practical difficulties, which Finance Minister Haris Georgiades and Central Bank Governor Panicos Demetriades will outline at the Frankfut meeting to allow a substantive discussion on the matter, which will lead to solutions of these practical problems.
Asked if Anastasiades and Draghi will discuss problems facing Bank of Cyprus employees, including voluntary redundancies, Stylianides said the discussion will concern the banking sector including the Bank of Cyprus, adding that the issues which concern the bank’s employees relate to the restructuring of the bank.
Last March Cyprus agreed with international lenders on 10 billon euro aid package, under which it closed down the Popular Bank, and imposed painful losses on deposits of more than 100,000 euros held at the euro zone state`s biggest lender, Bank of Cyprus. Both institutions were heavily exposed to the Greek debt

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