EBRD Plan for Cyprus: Banks, Ports and Privatisation

The European Bank for Reconstruction and Development laid out its first official plan of action for Cyprus on Wednesday, saying it would focus on repairing banks, privatisations and key infrastructure like ports.

The EBRD agreed a five-year deal to invest in Cyprus just over a year ago, making it the first bailed-out euro zone country to receive the bank's assistance.

The bank, which is owned by 64 governments and dominated by the G7 nations, has already pumped money into one of the country's banks but on Wednesday outlined a more in-depth plan.

"The proposed strategy assumes significant early operations to support financial sector restructuring, privatisation, and corporate restructuring," the EBRD said.

With over half of all loans on the books of Cyprus' banks not being repaid or borrowers behind with repayments, it said it would take equity stakes, help provide other forms of finance and possibly co-invest in distressed property portfolios.

Privatisations currently on the horizon include Cyprus' main telecoms and energy firms and its stock exchange. Other potential projects include the development of ports.

The plans are likely to be seen as a possible blueprint for Greece, which got a green light to become an EBRD recipient country earlier this year.

"The Bank intends to offer business advice on the whole territory of the island, cooperating with the EU and other donors," the EBRD said. Cyprus is split between the Greek-Cypriot South and Turkish-Cypriot north.

Reporting by Marc Jones