Russian President Vladimir Putin signaled acceptance of an accord reached by Cyprus on an international bailout, a week after berating an earlier rescue plan as “unfair, unprofessional and dangerous.”

Putin today ordered the government to start talks with Cypriot authorities on restructuring a 2.5 billion-euro ($3.2 billion) loan granted by Russia in December 2011, the president’s spokesman, Dmitry Peskov , said by phone. Terms sought by Cyprus would amount to a 10 percent writedown of the loan, Finance Minister Anton Siluanov said today. “Considering the decisions taken by the Eurogroup, President Vladimir Putin deems it possible to back efforts by the Cypriot president, as well as the European Commission, aimed at overcoming the crisis in the island nation’s economy and system of finance and banking,” Peskov said. The ruble reversed gains against the dollar, falling 0.2 percent to 30.8910 as of 7:04 p.m. in Moscow. The euro weakened 0.8 percent to $1.2890. In acquiescing to the terms of a rescue package brokered in late-night negotiations, Putin is tempering his indignation over a proposed penalty on Cypriot bank deposits as a result of a financial-industry overhaul. Rescue Package Cyprus agreed to the outlines of an aid package, paving the way for 10 billion euros of emergency loans to stave off the threat of default. Russian companies and individuals have an estimated $31 billion in Cyprus, according to Moody’s Investors Service. As part of the deal, the country’s second-largest bank will be shuttered under pressure from a German-led bloc. The accord […]

Click here to view original article at www.bloomberg.com

Invest In Yourself And Get Premium Analysis

Less than 20 cents a day
Major Currency Pairs Analysis
Forex Sentiment Analysis
Understand The Market
10 days money back guarantee

View Subscription Options

Would you like to connect?

Get notifications on new forecasts and articles.

Putin Warms to Cyprus Deal With Order to Renegotiate Loan

Trending Forex Articles