Cyprus govt briefs unions on expected bailout deal

  • Associated Press
  • November 23, 2012 - 4:55 AM

NICOSIA, Cyprus - Cyprus' government is briefing trade unions on the contents of a bailout that the country is expected to agree on with international creditors soon.

Government spokesman Stefanos Stefanou says a deal with the European Commission, the European Central Bank and the International Monetary Fund is being finalized at EU headquarters in Brussels.

Government workers' union boss Glafcos Hadjipetrou called public sector pay cuts "devastating" and "one-sided" but conceded Cyprus had little option but to negotiate a bailout with international lenders.

Cyprus' stock exchange rallied strongly on the expectation of a deal possibly later Friday. By midday, it was up 8.5 percent.

Cyprus sought international aid in June to prop up its banks that took huge losses on bad Greek debt.

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