[QODLink]
Europe

Cyprus pleads for EU help as bailout approved

President urges EU to take measures to spur growth in Cyprus without increasing $10bn bailout loans.

Last Modified: 12 Apr 2013 17:02
Email Article
Print Article
Share article
Send Feedback
Under the bailout deal, Cyprus will have to come up with $17bn of its own [AFP]

Cyprus has appealed to the EU for help in weathering a devastating economic crisis, as eurozone ministers approved a $13bn bailout for the nearly bankrupt island.

The appeal from President Nicos Anastasiades on Friday did not specify what he was seeking, but presidential spokesman Christos Stylianides made clear Nicosia was not looking for more money under the bailout programme.

The government "has not requested additional financial assistance under the memorandum with the troika," Stylianides said in a statement, referring to the deal reached with the so-called troika of international lenders - EU, IMF and European Central Bank.

"What the president of the republic is discussing with European officials is the possibility of increasing European funds for growth and social cohesion."

Stylianides said Cyprus would seek funds under the EU's multi-annual financial framework 2014-2020 for member states suffering serious consequences from the euro crisis.

He said Cyprus is also looking for additional funding from EU social cohesion and rural development funds.

'Reallocate structural funds'

Anastasiades said he had already spoken to EU Economy and Euro Commissioner Olli Rehn ahead of the ministers' meeting in Dublin and was also writing to European Commission chief Jose Manuel Barroso and EU President Herman Van Rompuy.

"We will try to reallocate structural funds so that we can use them as effectively as possible to support the kind of economic activities in Cyprus that will help the country to return to recovery ... for growing and investment and employment," Rehn said.

Of the loan approved on Friday, $11.8bn will come from the eurozone and $1.3bn from the International Monetary Fund.

Cyprus will also have to come up with $17bn of its own, with the bulk of that sum coming from the closure of its Laiki bank and the restructuring of the Bank of Cyprus.

Cyprus will also raise taxes, cut spending and implement structural reforms to improve its public finances and to be able to eventually repay its debt, that is to fall to 104 percent of GDP in 2020 from a peak of above 126 percent in 2015.

339

Source:
Agencies
Email Article
Print Article
Share article
Send Feedback
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
As Western stars re-release 1980s charity hit, many Africans say it's a demeaning relic that can do more harm than good.
At least 25 tax collectors have been killed since 2012 in Mogadishu, a city awash in weapons and abject poverty.
Tokyo government claims its homeless population has hit a record low, but analysts - and the homeless - beg to differ.
3D printers can cheaply construct homes and could soon be deployed to help victims of catastrophe rebuild their lives.
Featured
Pro-Russia leaders' election in Ukraine's east shows bloody conflict is far from a peaceful resolution.
Critics challenge Canberra's move to refuse visas for West Africans in Ebola-besieged countries.
A key issue for Hispanics is the estimated 11.3 million immigrants in the US without papers who face deportation.
In 1970, only two mosques existed in the country, but now more than 200 offer sanctuary to Japan's Muslims.
Hundreds of the country's reporters eke out a living by finding news - then burying it for a price.