The cost of bailing out Greek Cypriot Administration has exceeded estimations. Greek Cypriot leader Nicos Anastasiades asked for more money from Brussels ahead of a key meeting by Eurozone finance ministers.
European Union finance ministers adopted a 10 billion Euro bailout package for the Greek Cypriot Administration. According to the EU sources, the Greek Cypriot leader asked the Bloc to provide convenience, not for more money.
Besides more funds, Anastasiades reportedly asked the EU to activate structural funds, envisaging the development of least developed regions.
According to the original agreement, 17 billion Euros were needed to save the Greek Cypriot sector, 10 billions of which were to be provided by the EU. But latest calculations suggested that the cost of the crisis in the small country would hit 23 billion Euros. The EU wants the Greek Cypriots to raise the 6 billion Euro gap from its own sources.
Eurozone finance ministers are finalizing the latest version of the bailout package for the Greek Cypriot sector. The ministers approved the 10-billion Euro package.
The President of the European Central Bank Mario Draghi suggested that the Greek Cypriots should sell gold to finance the deficit. The package recently approved by EU finance ministers should be voted at the German and Finnish Parliaments before it is signed on April 24.
Should no problem arise during the approval process, 9 billion Euro of the bailout package will be funded by the EU, and the remaining 1 billion Euros by the IMF. The first slice of the bailout package will be delivered to the Greek Cypriot sector in mid-May.
The Greek Cypriots will have to take radical measures, such as increasing taxes and imposing lay-offs in the public sector, to raise 13 billion Euros.
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