Cyprus may need more than the €10 billion staffers have estimated for a financial lifeline, after bigger shortfalls than anticipated were found on the government's balance sheet, according to the minutes of a meeting of international and Cypriot officials.
Euro area finance ministers approved the bailout request from Cyprus on June 27. No amount was specified for the rescue, which will encompass the public sector as well as banks. Cyprus also sought assistance from the IMF and Russia. Cypriot banks lost more than €4 billion in Greece’s debt restructuring earlier this year. The government had to rescue the island’s second-largest lender, Cyprus Popular Bank Pcl, in May by underwriting a €1.8 billion capital increase. On June 27, Bank of Cyprus Pcl requested €500 million in temporary aid to meet regulatory requirements.
The EU’s Verwey declined to speculate on how much assistance Cyprus may require in the troika’s meeting with lawmakers, according to the minutes, which were verified by two officials involved in the talks.
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