June 25, 2012
Cyprus on Monday said it was formally requesting a bailout from the European Union in a bid to bolster its struggling banks, making it the fifth euro zone country to request a rescue.
The announcement came after weeks of concern that the crisis in Greece and a potential Greek exit from the euro could bring down the economy in the small island nation, whose banks are heavily exposed to Greece.
The slim victory of a pro-euro party in recent Greek elections helped to temporarily alleviate that concern, even as economists said Cyprus could need as much as €10 billion, or $12.5 billion, to shore up its ailing banks and cash-strapped public sector.
This article was posted: Monday, June 25, 2012 at 2:23 pm