Cyprus edges closer to seeking bailout

  • Cyprus could be next in line to seek European Union aid, according to the country’s central bank governor.

    The comments were made by Panicos Demetriades in an interview with the Financial Times and follow remarks made on Friday by President Demetris Christofias.

    Cyprus has previously rejected suggestions of a bailout but its banking system is exposed to Greece, which faces a possible exit from the eurozone.

    The Cyprus Popular Bank must find at least $2.2 billion by the end of this month in order to meet new EU capital requirement rules.

    A growing number of analysts believe the money will come from the European Financial Stability Facility.

    The island nation’s financial system has an exposure to Greece worth an estimated 144 percent of its gross domestic product.