03/10/2003 15:18
Cyprus is a credit-worthy customer for banks and there was no change in the terms of the loan, despite the considerable increase in fiscal deficit, Finance Minister, Marcos Kyprianou said on Friday, within the framework of the loan of EUR 200,000,000 signed between the Council of Europe Development Bank and the Republic of Cyprus.
The loan signed between the Finance Minister and the Director-General for Loans, Rainer Steckhan aims at financing the construction, extension and improvement of new school buildings and introducing technology in education.
The project covers the period 2003-2007 and concerns all educational levels. The total cost amounts to £260 million (EUR 442 million).
The new loan will be withdrawn gradually depending on the progress of operations, while for each loan withdrawn, a separate Loan Agreement will be signed between the Bank and the Government.
Terms
The agreement concerns a long term loan with an interest rate of 2.41% for floating interest rates in euros and 4.25% for fixed rates in dollars for 15 years.
Who is Who: Council of Europe Development Bank
The Council of Europe Development Bank, which was set up in 1956 by 6 Councils of European countries is the oldest international financial institution in Europe. The Bank grants loans and guarantees to its members, local authorities and financial institutions for the financing of social projects.
Since 1963, the Bank has granted loans of more than 1.8 billion euros to Cyprus for social and development reasons.
The loan signed between the Finance Minister and the Director-General for Loans, Rainer Steckhan aims at financing the construction, extension and improvement of new school buildings and introducing technology in education.
The project covers the period 2003-2007 and concerns all educational levels. The total cost amounts to £260 million (EUR 442 million).
The new loan will be withdrawn gradually depending on the progress of operations, while for each loan withdrawn, a separate Loan Agreement will be signed between the Bank and the Government.
Terms
The agreement concerns a long term loan with an interest rate of 2.41% for floating interest rates in euros and 4.25% for fixed rates in dollars for 15 years.
Who is Who: Council of Europe Development Bank
The Council of Europe Development Bank, which was set up in 1956 by 6 Councils of European countries is the oldest international financial institution in Europe. The Bank grants loans and guarantees to its members, local authorities and financial institutions for the financing of social projects.
Since 1963, the Bank has granted loans of more than 1.8 billion euros to Cyprus for social and development reasons.
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