FRANKFURT (MNI) – Cyprus plans to ask for its own EFSF bailout next
week, which would make it the fifth Eurozone country to seek outside
aid, German business daily Handelsblatt reported Thursday, citing a
diplomatic source.
The funds will be aimed at bailing out Cyprus’ banking sector, the
paper reported. However, a separate report in Germany’s Frankfurter
Allgemeine Zeitung said it was not yet clear whether the loan will be
limited to recapitalizing Cypriot banks, or will constitute a full-blown
government bailout program.
Neither paper cited the exact amount of funds Cyprus needs, though
FAZ said the request was expected to be for less than E10 billion. The
plans come as Spain is expected to make its own formal request for a
bank bailout of up to E100 billion at a meeting of Eurozone finance
ministers later Thursday.
–Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com
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