Last week Cyprus paid Russia 312,5 million euros as a first installment to pay off the 2,5-billion loan granted to Cyprus at the end of 2011 and restructured in 2013. This is reported by Cyprus Mail with reference to sources in the Cyprian Ministry of Finance.
Recall that the agreement on a loan from Russia was reached by the government of Dimitris Christofias, who lost access to international capital markets and tried to avoid interference of the EU and the IMF in their financial issues. The loan must be repaid in the form of eight equal payments every six months to the amount of 312,5 million euros. The next payment is planned for September of this year.
As of September last year, indebtedness to Russia accounted for 13% of the total amount of public debt (18,8 billion euros).
Initially, the loan was issued under 4,5% per annum, and its repayment was provided in the form of a one-time payment in 2016 year. However, in 2013, the cost of borrowing was reduced to 2,5%, and the repayment period was extended to 2021.