Greece News Weekly

Cyprus repays remainder of Russian loan, two years early

Cyprus’ finance minister said on Monday that the country has repaid ahead of schedule the remaining 1.58 billion euros ($1.73 billion) of a 2.5 billion euro ($2.74 billion) loan it received from Russia in 2011 amid a brewing financial crisis.

Harris Georgiades told The Associated Press on Monday that the repayment has been completed fully two years in advance without Cyprus incurring a penalty, thanks to an early payback clause.

Cyprus received the loan with a 2.5 percent interest rate to buoy its economy as its banking system faced a meltdown eight years ago. The island nation also staved off bankruptcy after accepting a rescue deal from other eurozone countries and the International Monetary Fund in 2013.

Cyprus’ economy has since rebounded in a robust manner, with the economy growing by 3.2 percent of gross domestic product in the second quarter of this year.