NICOSIA – There are positive indications over the extension period of the adjustment economic program expected to be agreed between the Cyprus government and Troika lenders – that is the EU, European Central Bank and IMF. This is what Permanent Secretary of the Ministry of Finance Mr. Christos Patsalides has said and added: “The support mechanism will cover 2013, 2014 and 2015. Our aim is for the program to cover 2016 as well, so that the Russian loan is coverd too.” And added: “We ask for a 4-year duration program to cover the financing needs for 2016 and make the program slightly more bearable…. the indications are positive.”

Moscow’s final response to a second loan request from Cyprus amounting to €5 billion is due within the next few days, he also said.

Cyprus, which concluded in 2011 a €2.5 billion with the Russian Federation, has requested a new loan agreement. Excluded from the international capital markets as of May 2011, Cyprus applied in June to the EFSF for financial assistance to bailout its two main banks which have been severely hit by the Greek sovereign debt haircut and to cover its refinancing needs.