News Summary: Cyprus sees more chance of EU aid

AP News
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Posted: Jun 04, 2012 12:37 PM
News Summary: Cyprus sees more chance of EU aid

HELP NEEDED: Cyprus' Central Bank governor says the country is struggling to find (EURO)1.8 billion ($2.23 billion) for the country's second-largest lender, Cyprus Popular Bank, by a June 30 deadline.

GREECE EFFECT: The bank is the most exposed to Greek debt and suffered huge losses after writing down the value of its Greek bond holdings.

RUNNING ON EMPTY: The government last month underwrote a (EURO)1.8 billion equity issue to help the bank raise capital from private investors. However, state coffers are running dry because Cyprus is unable to borrow from international markets after downgrades from two top credit ratings agencies.