University of Cyprus economics professor Sofronis Clerides said a Russian loan may generate a sense of complacency in the government, delaying pension reforms and public sector cuts and wage deals.
Moreover, he said any short-term benefits would be offset by offset by possibly dubious clauses hidden in the deal.
"Europe has made mistakes and it's justified to be concerned about its focus on austerity," said Clerides. "But the benefits of the EU forcing us to look at problems are greater."
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