Russia is extending the maturity and reducing the interest on its loan to Cyprus, a document prepared by international lenders has shown.
Russia’s agreement provides additional, though expected, financial relief to the island on top of a bailout by the EU and the International Monetary Fund.
Cyprus has complied with all conditions set by international lenders for the first €3bn (£2.5bn) of the €10bn bailout to flow to Nicosia later in May, according to the document, drawn up by the troika, consisting of the European Central Bank, the European Commission and the IMF, on 30 April.
Russia lent Cyprus €2.5bn in 2011 for five years, at an annual interest rate of 4.5%. Extending the loan and reducing the interest will ease debt-servicing costs for Nicosia and help it regain financial stability.
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