Russia to renegotiate Cyprus loan after EU bailout

Vladimir Putin recently criticised proposals for a bailout-enforced levy on Cypriot bank deposits as "unfair, unprofessional and dangerous". Credit: Ahmet Dumanli/AA/ABACAPRESS.COM

President Vladimir Putin has told his government to negotiate the restructuring of a Russian bailout loan to Cyprus, his spokesman has said.

The announcement signals Moscow's support for a €10 billion bailout, despite concern that Russian depositors in Cyprus could take losses as a result.

Cyprus had requested an extension of an existing €2.5 billion Russian loan, and a reduction in the interest it charges to 2.5 per cent from 4.5 per cent. Talks last week failed to agree on a restructuring.

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UK customers escape bank levy

Around 15,000 savers in the UK arm of stricken Cypriot bank Laiki will see their deposits protected under British rules and will escape the Cyprus banking levy.