Cyprus’ Finance Minister warned Wednesday that the eurozone country could seek a European Union bailout to help recapitalize its banking sector before crucial elections in Greece this Sunday.
Vassos Shiarly said that the Greek elections – seen as a vote on whether the debt-wracked country stays or leaves the eurozone – are a key factor to Cyprus’ decision whether to become the fifth eurozone member to ask for EU bailout money.
“The chosen time (to seek a bailout) will be decided in cooperation with all European Union partners, either within the eurozone or the Union as a whole,” Shiarly told a business forum in the capital, Nicosia.
“We also know that the deadline by which the recapitalization of banks has to be completed is very, very close … But because the problem that may arise from the (Greek) elections this coming Sunday is perhaps of the highest importance, this is also taken into account in our overall assessment.”
Shiarly cited the example of Spain, which last weekend asked for a loan lifeline of up to (EURO)100 billion from the 17 countries that use the euro to shore up Spanish banks.
“In most cases action is taken and the appropriate moment, meaning when the markets are closed,” he said.
(source: AP)
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