Cyprus Requests EU Aid

Fifth euro member state to seek bailout also asks for loan from Russia or China.

Cyprus sought a financial lifeline from the euro area’s firewall funds, becoming the fifth of the euro’s 17 member states to request a bailout.

The goal is to “contain the risks to the Cypriot economy, notably those arising from the negative spillover effects through its financial sector, due to its large exposure to the Greek economy,” the Cypriot government said yesterday in a statement distributed by the press and information office in Nicosia.

Unlike Greece

Government spokesman Stefanos Stefanou said in a telephone interview that the government took the decision to file a rescue request yesterday at a council of ministers meeting.

Greek Losses

European authorities have pressed Cyprus to take a full bailout package worth as much as 10 billion euros, resisting the country’s attempt to limit any aid to its banking system, two officials said earlier this month.

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