• Inside Labour

    The 'casualisation' of the workforce is often a ploy to cut costs, says Terry Bell.

  • When drones go dancing

    Drone technology's future is about to come to life in Cape Town, says Arthur Goldstuck.

  • Testing times for Matona

    New Eskom CEO Tshediso Matona has his work out cut out for him, says Mzwandile Jacks.

Data provided by iNet BFA
Loading...
See More

EU approves Cyprus bailout terms

Apr 12 2013 15:28 AFP

President Nicos Anastasiades of Cyprus. (Alex Mita, AFP)

Related Articles

Cyprus eases controls on banks

SA has little exposure to Cyprus crisis

Cyprus won't seek more eurozone money

EU ministers to tackle Cyprus fallout

Cyprus eurozone exit 'not an option'

Cyprus bailout swells to €23bn

 

Dublin - Eurozone finance ministers formally approved on Friday the terms of a Cyprus debt bailout, after some confusion over whether it needed revision, saying it could now go ahead once cleared by national parliaments.

Dutch Finance Minister Jeroen Dijsselbloem, head of the 17-nation Eurogroup, said the ministers "welcomed the staff level agreement achieved between Cyprus" and its international creditors, with the terms "fully in line with" a March 25 accord.

Earlier on Friday, it had appeared that Cyprus wanted additional aid after the overall bailout cost increased to €23bn from the €17bn agreed last month.

Cypriot officials clarified that Nicosia was instead hoping to get other funding from the European Commission, such as in grants for infrastructure or other projects so as to support a besieged economy expected to shrink by 12.5% - or even 15%  - in the next two years.

Under last month's accord, Cyprus had to cough up €7.0bn and its creditors - the EU, the European Central Bank and the International Monetary Fund - €10bn.

However, because the economy is now expected to fare so badly, another €6.0bn will be needed which Cyprus aims to find via an even more radical and painful restructuring of its bloated banking sector.

A Eurogroup statement said the approved bailout "is fully in line with the parameters and key objectives" agreed with Nicosia last month.

The Eurogroup noted with satisfaction moves to "address the fragile and unique situation of Cyprus' financial sector," while the overall agreement should allow the economy to "return to a sustainable path," it said.

The first aid payment should thus be possible in May, it added.


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

cyprus  |  eurozone
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...