While Cypriot officials said on Nov. 23 they had reached a deal with international lenders for a bailout, no agreement has been reached and the prospects are still fraught with problems.
According to the newspaper Fileleftheros, the first test will be on Dec. 12 when a meeting of Eurozone finance ministers is scheduled to discuss the bailout. Some countries, notably Germany, The Netherlands, France are objecting to some of the provisions.
Both the government and the opposition are frustrated that the first installment is not expected to be transferred before January. The loan is expected to have a period of repayment of 30 years, a 3% interest rate and the government will only have to start repaying it after 10 years. No amount has been given.
It is estimated that Cyprus won’t have a budget surplus until 2016 although there are hopes it can start to make a recovery next year. If the debt doesn’t come under control, the government plans to privatize agencies and public companies but to keep control of telecommunications.
(Source: tvxs.gr)
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