Putin orders Russian government to restructure Cyprus bailout loan

[dipsydoodle]

Source: Reuters

MOSCOW, March 25 (Reuters - President Vladimir Putin has instructed his government to negotiate the restructuring of a Russian bailout loan to Cyprus, his spokesman Dmitry Peskov said on Monday.

The announcement signals Moscow's support for a 10 billion euro ($13 billion) European Union rescue deal struck over the weekend, despite concern that Russian depositors in Cyprus could take losses as a result.

Read more: http://www.reuters.com/article/2013/03/25/us-eurozone-cyprus-putin-idUSBRE92O0BV20130325

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In other words he's helping : not being obstructive.

[pampango]

1. UK Guardian: Putin: we can restructure Cyprus's loan

Despite describing the haircut for wealthy savers as stealing, Russia has signaled that it will support Cyprus by agreeing to relax the terms of its existing loan.

President Vladimir Putin announced a little while ago that Russia will restructure the €2.5bn euro loan made to Cyprus in December 2011.

Howard Amos has the details:

“In light of the decision taken by the Eurogroup, President Putin considers it possible to support the efforts of the President of Cyprus and the European Commission, directed at overcoming the economic and systemic banking crisis of this island state,” Putin's spokesman Dmitry Peskov told journalists, Interfax reported.

Cypriot Finance Minister Michalis Sarris visited Moscow last week to seek financial support from the Kremlin, but was sent away apparently empty handed. A re-negotiation of the loan, including reducing the interest rate and extending its duration beyond 2016, was one of the items discussed.

http://www.guardian.co.uk/business/2013/mar/25/eurozone-crisis-cyprus-bailout-deal-agreed

Perhaps a welcome reconsideration on the part of Putin from his stance last week.

[bhikkhu]

2. That's good news

appears to be a pragmatic position, which is often the best approach to crises.