Cyprus announces move to apply for EU bailout

Mon, Jun 25, 2012, 01:00

Cyprus informed European authorities today of its decision to request financial assistance from the euro area's bailout funds, the government said in a statement this evening.

Cyprus's finance ministry said earlier today that it was confident the government could tackle the challenges facing its economy after Fitch downgraded the country's rating to junk.

"The Republic of Cyprus, on both a national and European Union level, has at its disposal all the necessary tools to fully protect the sound operation of the financial system and to further deal with the economic challenges of today," the Nicosia-based ministry said in a statement today.

Cyprus, which has been shut out of financial markets since May last year, is considering requesting aid from the euro area and Russia, and is also reaching out to China.