Cyprus president doesn't see new bailout to fund peace deal

Reuters News
Posted: Apr 07, 2016 1:10 PM

ATHENS (Reuters) - Cypriot President Nicos Anastasiades said on Thursday he did not expect Cyprus would need a new international bailout in the event of reunification of the island, split by a war in 1974.

Speaking at a news conference in the Cypriot capital Nicosia, Anastasiades said the potential benefits of a Cyprus settlement could be 'huge'.

The International Monetary Fund and the World Bank are now carrying out studies into the matter, he said in a news conference broadcast live by Cyprus state TV.

“I don’t see how it would be possible for us to be led into to a new Memorandum of Understanding, if one takes into account there will be transitional periods and safeguards built in (to a solution) so there will be no economic oscillations," he said in response to a question.

Cyprus was split in a Turkish invasion in 1974 after a brief Greek inspired coup, and the island's Greek and Turkish Cypriot communities remain separated.

Anastasiades represents the Greek Cypriot community in peace talks with Mustafa Akinci, the Turkish Cypriot leader. Diplomats say the negotiations represent the best chance in years to settle the decades-old conflict.

(Reporting By Michele Kambas)