Cyprus goes cap-in-hand to euro bailout funds

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Cyprus goes cap-in-hand to euro bailout funds

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Cyprus has become the latest member of the eurozone to seek financial help from european bailout funds.

The government said it needs assistance from the European Financial Stability Facility and the European Stability Mechanism because its banks have been severely hit by the debt crisis in Greece.

An official statement said Cyprus needs the aid “to contain the risks to the Cypriot economy, notably those arising from the negative spillover effects through its financial sector due to a large exposure in the Greek economy.”

Greece, Ireland and Portugal have already been rescued with international money. Spain has also asked for help for its banks.