Cyprus needs 5,8 billion euros as soon as possible. It doesn't matter how now. Without that money, international creditors will not release the 10 billion loan needed to recapitalize the island's banks and the country will end up in bankruptcy. Yesterday the Parliament has rejected the EU proposal of a forced withdrawal on current accounts and at this point "it is up to the Cypriot authorities to present an alternative scenario that respects the criteria of debt sustainability and financial parameters", said today the spokesman of the European Commission, Olivier Bailly. The Nicosia government is therefore working on a plan B. Or rather, a series of plans.
So far, the only outstretched hand is that of Cypriot Orthodox Church. Archbishop Chrysostomos II - at the end of a meeting with President Nicos Anastasiades - announced that the clergy is ready to make its enormous real estate available. A generous aid, which however would not be enough.
Two other hypotheses would prove more profitable. First you think of nationalize pension funds of public and para-state institutions: a measure that according to government sources could guarantee up to three billion euros. Furthermore, to reduce the amount of necessary bank recapitalizations, the State could decide to pilot the merger of the two largest lenders in the country.
These are the roads that the island could choose to take on its own. However, most of Nicosia's hopes are pinned abroad: this time not in Brussels, but in Moscow. Yesterday the Cypriot Finance Minister, Michalis Sarris, flew to Russia to try to obtain financial support from the Kremlin. There is currently no agreement and negotiations are continuing.
Cyprus has asked Moscow to extend the duration of the 2,5 billion euro loan received two years ago (expiring in 2016) and to reduce the interest rate (now at 4,5%). Some rumors also speak of the request for an additional five billion credit. According to the latest rumors, the smallest EU state would have offered in exchange a share in the undeveloped offshore gas reserve of Cyprus (it is no coincidence that in recent days there had been talk of Gazprom's involvement in the operation), but the Russian authorities they denied any Kremlin interest in this regard.
So far the only real certainty is that most of the large assets parked in the island's banks are of Russian origin (many suspect that they are mostly revenues produced by illegal activities and recycled in the sun). Of the 91,5 billion euros deposited in Cypriot institutions, 18,3 billion officially belong to Russian citizens.
