Cyprus will support its Greek-exposed banks in recapitalizing but only after they have made exhaustive efforts of their own, Finance Minister Kikis Kazamias said that the state’s present capacity to help is limited.
Kazamias told an economics conference that resorting to aid from the euro zone’s EFSF rescue fund would be a last resort for the island state, which would work to avoid such a move.
Cyprus has been struggling to buffer itself against the impact of its banks’ exposure to Greece, seen at risk of a sovereign debt default, and credit ratings cuts which have caused yields on its bonds to spike, effectively shutting it out of capital markets.
It recently signed a 2.5 billion euro bilateral loan from Russia that will cover refinancing requirements next year.
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