Cypriot credit system 'standing ready'

The Cypriot banking system is at a ?critical turning point? following losses arising from a writedown of Greek government bonds and the Cyprus government is ready to support lenders if needed, the island?s Finance Ministry said on Friday.

Cyprus ?has prepared a comprehensive plan to effectively tackle the challenges in the banking sector,? according to an e-mailed statement from the Nicosia-based ministry.

The government ?stands ready, as has repeatedly been stated, to intervene, if necessary. Any state intervention will be undertaken with a view to enhance financial stability and confidence and also to minimize the overall cost to the economy.? [Bloomberg]