Cyprus economy to shrink 12.5% despite EU bailout

Euro zone finance ministers are expected to give political approval on 12 April 2013 to a 10 billion euro bailout package for Cyprus with a view to signing a formal agreement later in April 2013, with the first loans to reach Nicosia in early May 2013.

According to internal papers prepared by the troika of international lenders and seen by Reuters and the Financial Times, Cyprus' total financing needs are now €23 billion from the second quarter of 2013 to the first quarter of 2016, six billion more than was originally estimated last year.

• Primary Source

ESO: Background information: Eurogroup Statement on Cyprus, 25.03.13 http://www.europeansources.info/record/eurogroup-statement-on-cyprus-2/

ESO: Background information: Find all further information in ESO on the Cyprus economic and banking crisis http://www.europeansources.info/advSearchLink?keyword=Cyprus%20economic%20bailout%20&searchOption=all

Reuters, 10.04.13: Factbox - Cyprus bailout, financing needs http://uk.reuters.com/article/2013/04/10/uk-cyprus-bailout-idUKBRE9390UA20130410

BBC News, 11.04.13: Cyprus to sell gold reserves to help fund bailout http://www.bbc.co.uk/news/business-22106187

BBC News, 12.04.13: Cyprus to appeal to EU for extra bailout funding http://www.bbc.co.uk/news/business-22116270

Spiegel Online International, 12.04.13: Bailout Bargaining: Cypriot Shortfall Irks German Conservatives http://www.spiegel.de/international/europe/growing-bailout-german-conservatives-angered-by-cypriot-shortfall-a-894004.html

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