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Cyprus asks for bailout from the eurozone

The Cypriot government confirmed the news this evening, citing the country’s exposure to the Greek economy.

Image: Leonid Mamchenkov via Flickr/Creative Commons

CYPRUS HAS CONFIRMED that it intends to ask the European Union for a financial bailout.

In a statement this evening, the Cypriot government said it needs assistance to help stem the fallout effect of the Greece crisis on its banks. Cyprus was heavily exposed to the Greek economy and has been badly hit by the economic turmoil in Greece.

Cyprus has not released details on exactly how much money it will be asking for from the European Union.

“The government of the Republic of Cyprus has today informed the appropriate European authorities of its decision to submit to euro area member states a request for financial assistance,” the statement said.

The country’s credit rating was cut to junk status by ratings agency Fitch earlier today, less than two weeks after Moody’s also downgraded the country’s rating.

Cyprus joins Ireland, Greece and Portugal as the latest country to request a bailout loan. Earlier today, Spain confirmed that it has requested aid of up to €100 billion for its banks.

Moody’s drives Cyprus towards junk status with two-notch downgrade >

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