ECONOMY

Cyprus may need EU bailout

Nicosia could soon seek help from the European support mechanism, but without having to adhere to the strict conditions imposed on other troubled eurozone members, according to the island?s finance minister.

Vassos Shiarly told RIK state radio on Friday that ?if we take the necessary measures in time, we will be able to seek funding from the European Union support mechanism without having any tough terms imposed on us.?

Central Bank of Cyprus Governor Panicos Demetriades on Friday seconded that he does not rule out that the island may resort to a European bailout.

?We should not rule out anything,? Demetriades, who is also a member of the governing council of the European Central Bank, told reporters in Nicosia after a meeting with the head of opposition Democratic Rally (DISY), Nikos Anastasiades. ?Whatever may happen will occur for the good of the economy and the banking system,? he added.

Cyprus?s economy contracted 1.5 percent in the year?s first quarter on an annual basis.