[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
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Israel's Operation Protective Edge is the third major offensive on the Gaza Strip in six years.
Muslims and Arabs in the US say they face discrimination in many areas of life, 13 years after the 9/11 attacks.
At one UN site alone, approximately four children below the age of five are dying each day.
Featured
The conservative UMP party suffers from crippling internal divisions and extreme debt from mismanagement.
More than fifty years of an armed struggle for independence from Spain might be coming to an end in the Basque Country.
After the shooting-down of flight MH17, relatives ask what the carrier has learned from still-missing MH370.
Human rights and corporate responsibility prompt a US church to divest from companies doing business with Israel.
Afghan militias have accumulated a lengthy record of human-rights abuses, including murders and rapes.
join our mailing list