Putin Approves Cyprus Bailout, Suggests Loan Restructuring

Russian President Vladimir Putin has issued a statement suggesting support for the bailout agreement reached between the EU and Cyprus.

"Given the decisioins taken by the Eurogroup, President Putin finds it possible to support the efforts of his Cypriot counter part and the EC towards overcoming the crisis in Cyprus's economy and banking sector," stated Putin's spokesman Dmitry Peskov Monday.

According to Peskov, Putin has also asked the Russion government to consider the possibilities for restructuring of the 2011 EUR 2.5 B loan to Cyprus.

Cypriot FinMin Michalis Sarris was in Moscow end of last week in an attempt to renegotiate the loan, but talks came to to concrete results.

Cyprus asked Russia for an extension of the deadline for the loan's repayment, and a lowering of interest from 4.5% to 2.5%.

But Russia later made it clear that it is not ready to ease terms on the loan before the finanically troubled Cyprus reaches a rescue plan greement with the EU.

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