ECONOMY

Cyprus bailout needs more discussion

Cyprus needs more discussions with its potential rescue creditors to iron out differences on the terms of a bailout for its troubled banks, the country’s government spokesman said late on Friday.

Stefanos Stefanou said «differences in approach» remain after a second round of talks with officials from the European Union and the International Monetary Fund wrapped up Friday.

“Theres common understanding on some issues, but there may be differences in approach on exactly how youll reach that goal,» Stefanou told reporters.

Cyprus last month became the fifth country to seek financial support from its eurozone partners. It needs at least 2.8 billion euros ($3.46 billion) to recapitalize its banking sector, which took heavy losses on Greek debt.

The country’s 18 billion euros ($22.13 billion) economy is projected to shrink by 1.5 percent of gross domestic product this year before returning to marginal growth in 2013.

Credit ratings agency Standard