Cyprus closer to seeking EU bailout / Cyprus poised to seek bailout within days

Author (Person)
Series Title
Series Details 4.6.12
Publication Date 04/06/2012
Content Type

Report of a FT interview with Panicos Demetriades, the Governor of the Central bank of Cyprus, June 2012. He reported that Cyprus was increasingly likely to seek European aid to deal with the impact of the Greek crisis on its own banking system.

Cyprus still hoped to avoid entering into a full economic adjustment programme, as Ireland, Portugal and Greece had done. Such a move would be widely seen at home as ceding fiscal sovereignty. But avoiding such outside controls was unlikely as EU officials had made clear any bailout funding, even if it is just to recapitalise banks, came with the same 'conditionality' as direct funding for countries.

Related Links
ESO: Background information: Nicosia acts to shore up Cypriot bank
EUObserver, 4.6.12: Cyprus bail-out 'not excluded'
BBC News, 3.6.12: Cyprus would seek EU bailout money 'if necessary'
EurActiv, 7.6.12: Cyprus readies EU presidency plan, and bailout bid
Kathimerini, 11.6.12: Cyprus urgently seeking to resolve bank bailout issue
Cyprus Mail, 13.6.12: A bailout, quick! (via PressEurop)

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