Cyprus, the fifth euro zone country to seek emergency funding from Europe, may need a bailout of up to 10 billion euros, over half the size of its economy. The Mediterranean island, with a banking sector heavily exposed to debt-crippled Greece, said on Monday it was formally applying for help from the European Union’s rescue funds.
Cyprus has only four days left to raise at least 1.8 billion euros, which is equivalent to about 10-percent of its GDP, to meet a deadline set by European regulators to recapitalize its second largest lender, Cyprus Popular Bank, which saw its balance sheet hurt by its exposure to Greek debt.
The full amount of the bailout would be decided over the course of the coming weeks and adding fuel to the fire. Fitch has cut the nation’s sovereign credit rating on Monday BELOW investment grade to double-B-plus.
中国公共网摘编:GAN JADE |