NICOSIA - Cyprus said on Thursday it had secured the second tranche of a €2.5b bilateral loan from Russia to cover its financing requirements this year.
The Republic received a €1.32b euro installment, the finance ministry said. It received €590m in December and the third tranche, also €590m, will be disbursed at the end of March.
Part of the amount would be used for bond redemptions falling due in coming months, the finance ministry said.
Cyprus's banking sector is heavily exposed to the troubled Greek economy. Its credit ratings have been slashed over the past 18 months as Europe's debt crisis has also taken its toll.
Cyprus, the first euro zone country to tap bilateral borrowing instead of resorting to a bailout, has been effectively shut out of international capital markets since last May. Yields on its traded bonds have made it too costly to borrow from conventional markets.
Cypriot officials have previously said the loan is repayable in 4.5 years and bears an interest rate of 4.5%.