ECONOMY

Nicosia favors ECB bond purchase

Cyprus?s government supports purchases of its bonds on the secondary market by the European Central Bank, government spokesman Stefanos Stefanou said on Monday.

Outgoing Finance Minister Kikis Kazamias ?has sent a letter on this issue? to the Frankfurt-based European Central Bank, Stefanou told reporters in Nicosia on Monday. ?We definitely want this kind of support which other countries enjoy.?

The eastern Mediterranean island, the third-smallest economy in the 17-member eurozone, was shut out of markets in May as borrowing costs rose amid investor concern that the government may have to support banks facing losses on their Greek holdings.

[Bloomberg]