Cyprus becomes fourth eurozone country to seek bailout

Cyprus becomes fourth eurozone country to seek bailout

Cyprus becomes fourth eurozone country to seek bailout

Cyprus has applied for a bailout following its exposure to the Greek economy, the country’s government announced in a statement this evening.

It is the fourth eurozone country to seek financial assistance from its European partners.

“The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spill over effects through its financial sector, due to its large exposure in the Greek economy,” said the statement.

Earlier today ratings firm Fitch downgraded Cyprus’s sovereign credit rating to junk territory.

Fitch said the move was “principally due to Greek corporate and households exposures of the largest three banks – Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank – and to a lesser degree the expected deterioration in their domestic asset quality”.