Cyprus expects swift start to bailout talks

Cyprus’s finance minister said yesterday he expected final negotiations to start with lenders on financial aid by next week.

There is widespread speculation Cyprus’s bailout will exceed €10 billion or 60 percent of its GDP.

Vassos Shiarly told reporters a figure had not been set for Cyprus’s financial needs because of a difference of opinion between the government and lenders on the recapitalisation requirements of banks.

Asked by Reuters whether he expected discussions with lenders to start before the end of the month, he said: “Within the month, and certainly in the coming week. Time is restricted and there is not much time left.”

The talks involve the European Commission, International Monetary Fund and European Central Bank. Cyprus applied for aid from the EU and IMF in June to support its banks after they reported massive losses on their exposure to Greece.