Cyprus plans to get a 2.5 billion euro loan from Russia, the country’s government spokesman, Stefanos Stefanou, said on Wednesday.
The loan for 4.5 years may be granted at an interest rate of 4.5 percent and the credit line may be opened in January 2012, Stefanou said, adding that the country's cabinet of ministers hoped to get the loan as soon as possible.
Debt problems in neighboring Greece have posed challenges for Cyprus' economy. Finance Minister Kikis Kazamias has said that the country would not ask the European Union for financial support despite calls from some Cypriot politicians to request assistance.
“We expect the implementation of a loan agreement, combined with measures aimed at ensuring medium-term budget stability, to provide Cyprus with significant benefits,” he said.
Russia's former finance minister Alexei Kudrin said in September that Russia and Cyprus nearly reached agreement on the loan.