NICOSIA, Cyprus (AP) — Cyprus’ finance minister says the east Mediterranean island nation has repaid ahead of schedule the remaining 1.58 billion euros ($1.73 billion) of a 2.5 billion euro ($2.74 billion) loan it received from Russia in 2011 amid a brewing financial crisis.
Harris Georgiades told The Associated Press on Monday that the repayment is two years in advance without Cyprus incurring a penalty thanks to an early payback clause. Cyprus got the loan with a 2.5% interest rate to buoy its economy as its banking system faced a meltdown. Cyprus staved off bankruptcy after accepting a 2013 rescue deal from other eurozone countries and the international Monetary Fund.
Cyprus’ economy has since rebounded strongly. The economy grew by 3.2% of gross domestic product in the second quarter of this year.