Russia offers loan to pay Cyprus’ debt

Russia offers $3.5 bn low-interest loan to Cyprus to help the country avoid defaulting on its debts.

The Republic of Cyprus has one of the largest exposures to Greek debt, which is why some analysts think it will struggle to avoid defaulting unless it gets a bailout.

Now Russia is offering the country a multi-billion dollar loan with low interest.

Russians have close ties to the island, with around 25,000 of them living in Limassol on Cyprus’ south coast; around one-tenth of the town’s population.

The island is an attractive place for Russians to live and work, and many say they get a warm welcome from Cypriots, as well as special tax breaks for their businesses.

But some say Moscow’s move is motivated by its desire for Russian companies to gain a slice of Cyprus’ energy market.

Al Jazeera’s Nadim Baba reports from Limassol in Cyprus.

Source : Al Jazeera

More from Economy
Most Read