Cyprus turns to Russia after rejecting EU bailout

The President of Cyprus has called an emergency meeting of party leaders Wednesday in a frantic search for a viable plan B after MPs rejected the terms of an EU bailout aimed at saving Cyprus from bankruptcy. Under the bailout deal, the European Union, European Central Bank and International Monetary Fund were to provide Cyprus with 10 billion euros ($13 billion) on condition the island raises another 5.8 billion euros. It called for a levy of up to 9.9 percent to be slapped on all Cyprus bank deposits, an unprecedented move that triggered outrage among savers and raised fears other financially crippled EU states like Italy and Spain could be next. President Nicos Anastasiades says he “fully respects” the decision and that he had a “constructive” phone conversation with his Russian counterpart Vladimir Putin, amid reports Cyprus was seeking alternative financing. Meanwhile Germany, which has taken a very hard line on the Cyprus rescue, said it regretted the outcome of the parliamentary vote and warned Nicosia against taking the easy option. Cypriot Finance Minister Michalis Sarris is set to meet his Russian counterpart Anton Siluanov on Wednesday in the hope of easing the terms and winning an extension of a 2.5-billion-euro loan that Moscow afforded Nicosia in 2011.


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