Russia has come to a decision after months of negotiating to restructure the €2.5 billion loan it gave Cyprus in 2011.
According to Russia’s deputy finance minister Sergei Storchak, a positive decision regarding the loan was made during a recent cabinet meeting. Repayment will be in the form of eight equal payments every six months starting in 2016.
“The repayment period will be extended and the interest rate has also been favourably decreased from 4.5 per cent to 2.5 per cent,” Storchak said.
The loan had originally been given for four and a half years.