ECONOMY

Moody’s: Cypriot banks could need extra 1.5 bln euros

Cypriot banks could need a further 1.5 billion euros of capital to cope with a rise in bad loans in a rapidly contracting economy, credit rating agency Moody’s Investors Service said on Thursday.

Moody’s said the Mediterranean island’s banks and cooperative lenders were likely to need the money on top of the 2.5 billion euros of European Union support already earmarked for the banking sector.

[Reuters]