Government starts repaying €2.5bn Russian loan


By Stelios Orphanides

Cyprus last week paid 312.5m to the Russian Federation as a first instalment of a €2.5bn loan agreed more than six years ago and restructured in 2013, a finance ministry source said.

The loan, agreed in late 2011 by the government of former president Demetris Christofias, which lost access to financial markets and was trying to avoid requesting a bailout from the European Union and the International Monetary Fund (IMF), will be repaid in eight biannual instalments of €312.5m. The next payment is scheduled in September.

The Russian loan accounted in September for 13 per cent of the total public debt of €18.8bn, according to the latest available figures on the website of the Public Debt Management Office.

As part of the initial loan agreement, Cyprus had to pay a 4.5 per cent annual interest on the borrowed amount and repay it in one instalment in 2016. The restructuring of the loan provided for a reduction of the interest rate to 2.5 per cent and the extension of the repayment period to 2021.

In November, the government which last year generated a budget surplus of €360.7m on a cash basis, also made a €614.9m payment against a loan from the Central Bank of Cyprus, reducing the debt to gross domestic product (GDP) ratio below the 100 per cent mark.



About Author

Stelios Orphanides is a journalist at To contact Stelios Orphanides: [email protected]

  • Douglas

    His picture always takes my mind back to the Marri Disaster, tragic.

  • Bob Ellis

    This article underlines how critical it is that AKEL and traitors like the village idiot should never be put back in power. Unfortunately it would appear that most of the electorate have the interlect and memories of goldfish so the country could be on it knees sooner than we think. People still defend him in discussions, with some being delusional enough to think he was one of the greats!

    • Evergreen


    • alexander reutersward

      Agree, but the sitting government also like to promise everyone everything…but than again..that is a global thing

    • CM reader

      That is harsh ! It is not all down to Christophias (and no I am not communist or a blind left winger). It was a collective failure by all the politicians who incidentally are still in power.
      You are all forgetting that christophias did not control the parliament consequently he could not opt for a bailout as he could not get the terms of the bailout agreed through the parliament. The other parties refused to play ball with the consequences of people loosing their hard earned savings.
      That is not to say he is not without blame.
      He should have resigned and let the people decide having been made fully aware of the issues.

      • JS Gost

        Apart from murdering 12 people, illegally borrowing 2.5b and driving the country on the rocks he was a really great bloke. Cypriots backed him and continue to back him and his ilk but his personal ‘achievements’ have not been answered. Whilst I agree there are mnay others who should be brought to task for their crimes he has to be seen as the figure head for most of what happened. As I have said before, the saddest fact is that 42% of the population still agree with him and his policies.

        • CM follower

          Obviously not persuaded by left leaning policies!

    • Mike

      So, very much like Germany, France and UK then. Comforting to know we are not the only sheeples believing all the lies our politico’s feed us.

  • Good pay it off asap.

  • HighTide

    Start saving for the next 10 billion repayment to the EU.

    • CM reader

      we are paying our debts turkoe because we are honourable unlike you lot

      • HighTide

        Your debt occurred precisely because your government, developers, banks and lawyers behaved anything but honorable, rather criminal.

  • Ken Thesparky

    The figures here do not add up, 8 x 312.5m = 2.5 billion but what about the interest of 2.5%. 2.5billion at 2.5%=62.5m a year x 7 years is another 437.5 million and thats without the compound interest over the time its not paid.