(MENAFN- Kuwait News Agency (KUNA)) Cyprus has become the fifth member of the Eurozone to ask for a bailout from the Euroean Union to deal with its banking sector crisis.
The 17-member Eurogroup in a statement Wednesday welcomed "the request of the Cypriot authorities for financial assistancefrom euro area Member States in view of the challenges that Cyprus is facing, in particular due to distress in the banking sector and the presence of macroeconomic imbalances." The Eurogroup said it is considering responding favorably to the Cypriot request but did not specify the amount.
However, media reports said Cypriots will ask for around 10 billion euro. The Eurogroup also welcomed the request of the Spanish government for financial assistance from euro-area Member States. The statement noted that the eligibility conditions for financial assistance for the re-capitalisation of financial institutions in Spain are satisfied. The Eurogroup indicated that the additional capital needs of the Spanish banking sector as a whole can be currently estimated to be in a range of 51-62 billion euro.
Greece, Ireland and Portugal have already received billions of euro in bailout from the EU and IMF.
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