Qatari-cypriot development deal in jeopardy

The Cypriot government yesterday denied that negotiations with Qatar on the multi-million euro investment project had collapsed and called instead for less "noise" on the matter.

Government spokesman Stefanos Stefanou said yesterday: "I want to make clear that there is no collapse (of negotiations) on the matter of Qatar. We are in the process of contacts and negotiations aiming to realise the Qatari investment."

The Cyprus Mail reported on Wednesday that the deal had run aground with Qatar looking to step away from a deal which according to a source close to the negotiations had seemed just around the corner.

The source said the two sides were close to agreement on the value of prime real estate sitting opposite the Hilton Hotel in Nicosia earmarked for development when Qatar sent a letter to the government last week, backtracking on previous evaluations.