Bloomberg News

Cyprus Said Unlikely to Restart Bailout Talks Before Mid-October

September 26, 2012

Officials of the so-called troika that oversees euro-area bailouts are unlikely to return to Cyprus to restart bailout talks until at least mid-October, a Cypriot official said.

The talks will probably have to wait until Cypriot Finance Minister Vassos Shiarly returns from an International Monetary Fund meeting in Tokyo that concludes Oct. 14, the official said on condition of anonymity because the deliberations are private. Shiarly will also attend a meeting of European finance ministers in Luxembourg Oct. 8-9.

Cyprus on June 25 became the fifth country in the euro area to seek external aid. Euro-area finance ministers agreed to begin talks two days later. No amount was specified for the rescue, which will encompass the public sector as well as banks. Cyprus also sought assistance from Russia and the IMF.

The Cypriot government’s counter-proposal to the troika, composed of officials from the European Commission, the European Central Bank and the IMF, is “essentially complete,” spokesman Christos Christofides said on Sept. 24.

A previous draft of the counter-proposal was rejected by communist President Demetris Christofias, and a “milder’ version was prepared, the official said.

The draft will be discussed with political parties and social partners before it’s submitted to the troika, according to Christofides.

To contact the reporter on this story: Stelios Orphanides in Nicosia at sorphanides@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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