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]