Russia May Lend $3.4 Billion to Cyprus as Fiscal Woes Mount

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Russia may lend as much as 2.5 billion euros ($3.4 billion) to Cyprus by the end of the year as the eastern Mediterranean island seeks cheaper funding amid surging borrowing costs.

“We’ll probably reach a final agreement only by the end of the year, no sooner,” Russian Deputy Finance Minister Sergei Storchak told reporters late yesterday in Washington.