Cyprus Asks Russia for 5 bn Euro Loan

Cyprus asked Russia for 5 bn euro loan for recapitalization and budget deficit reduction purposes. Minister of Finance of Russia Anton Siluanov informed that this question is being discussed.
Head of Debt Management Department of Ministry of Finance of Russia Konstantin Vishkovski said, that for financial assistance Russia applied to EU, so they’ll take into consideration EU’s opinion on it.
According to data of 2011, external debt is 71.6% of GDP. Till the end of this year Cyprus should find 1.8 bn euros to recapitalize the Cypros Popular Bank, which is the second biggest bank in Cyprus. Besides that, other banks are also in need of financial assistance.
EU stated that it doesn’t exclude the possibility of satisfaction of Cyprus’ claim, but according to calculations the real amount is not 5bn but 10 bn, which is just about the half of annual GDP.
IMF head Christine Lagarde expressed her concern about worsening of world economical situation. She doesn’t exclude the economic slowdown of developed and developing countries, as economic indicators of US, Europe and other big financial markets have already been reduced, which has its negative impact on economic development of other countries.