Russia ready to help Cyprus’ effort for economic recovery

Russia is ready to help Cyprus in its difficult economic situation, Russian Ambassador in Cyprus Stanislav Osanchiy said, pointing out the interest that economic circles and the political leadership of Russia have in Cyprus.

“As the Ambassador I will do everything possible to help stabilise this situation and increase interest. However in my effort, I will need the assistant of the politicians and the political parties of Cyprus”, he said speaking after a meeting with House President Yiannakis Omirou.

“You have visited Moscow and have seen there is interest in Cyprus both from financial circles and our political leadership,” the Ambassador told Omirou.

Expressing hope for closer links with the House of Representatives, he noted “we must always share our views especially at this time,” especially as far as the Cyprus issue and economic issues are concerned.

The Cypriot House President pointed out that under the present conditions of global upheaval, economic crisis and instability in the Eastern Mediterranean and the Middle East, relations between Cyprus and Russia should not be weakened but must be constantly strengthened.

Cyprus and the European Commission, the European Central Bank and the IMF, collectively called as the Troika, agreed last March on a €10 billion EU bailout which featured a unprecedented conversion of 47.5% of uninsured deposits in the island`s largest lender, Bank of Cyprus (BOC), in a bid to plug its capital shortfall, in what is being called as a bail in.

A revised Loan Agreement between the Governments of the Republic of Cyprus and the Russian Federation was signed on 12 September in Moscow. The Loan Agreement for the amount of EUR 2,5 billion is amended so that the annual interest rate is set from 4,50% to 2,50% and the amortisation schedule consists of eight biannual installments between the years 2018 and 2021 instead of a single repayment in 2016.

Omirou also expressed deep gratitude to the Russian government and the Russian people for the longitudinal support of Russia, in the struggle of the Cypriot people for independence and for the defense of the sovereignty and territorial integrity of the Republic.

“When other countries, who are now our partners, refused to help us secure rudimentary defences as any country in the world is entitled to have, Russia stepped in and responded to our call,” he said. He added that Cyprus won’t forget that, nor will it forget Russia’s consistent and enduring support at the UN Security Council.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third.