Cyprus bank urges action to avert bail-out

The Bank of Cyprus, the largest bank in Cyprus, warned in August 2011 that the country will be forced to seek a bail-out from the European Union if politicians do not move quickly and agree a new deal to shore up its finances.

The warning echoed similar recent ones from other commercial banks and the Governor of the Central Bank, which reflected the deepening concern that a political standoff was preventing the government from confronting what analysts believed was an otherwise manageable fiscal challenge.

ESO: Background information: Storm gathers over Cyprus http://www.europeansources.info/record/moodys-downgrades-cyprus-bonds-cyprus-dissolves-cabinet-as-crisis-grows-storm-gathers-over-cyprus/

EUObserver, 2.8.11: Cyprus bank warns against 'bad' EU bailout http://euobserver.com/9/32673

Politis, 5.8.11: New cabinet to combat crisis (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/837211-new-cabinet-combat-crisis

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