Cyprus could reach bailout deal

Cyprus

wikipedia-EUCyprus

Cyprus could finally settle a financial rescue package with international lenders for the country's public sector and banking system, which are strongly affected by the economic crisis in Greece. The Mediterranean country is seeking a €17 billion bailout. 

The deal, leading to Cyprus' official bailout request, is likely to be concluded after the country's February presidential elections. 

"It is a fair bet that a final decision will not be made under the present government, but it will be one of the first tasks of the next government, after the elections on February 17th," said an EU official, adding the government will be well funded until then.

Cyprus is the fifth eurozone country to seek external financial rescue. In September, the Mediterranean country also sought a loan worth €5 billion from Russia. 

The Troika, the tripartite committee comprising the European Central Bank (ECB), the European Commission and the International Monetary Fund (IMF), ended the country review in November. The lenders seek €975 million in spending cuts over three years from Cyprus.