The Central Bank of Cyprus on Tuesday said it supports the decision of the government to seek financial support from the European Financial Stability Fund.
The government was forced to request funds as ailing banks need to be recapitalized in order to meet the deadline set by the European Banking Authority in June 2012.
Further, the central bank said it is also necessary to take all appropriate measures to contain possible future contagion emanating from the operation of Cypriot banks in other countries.
In response to the formal application for financial assistance, Eurogroup President Jean-Claude Juncker said they will swiftly examine the request and will provide a formal response to Cyprus.
by RTT Staff Writer
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