NICOSIA (MNI) – The Central Bank of Cyprus Tuesday issued the
following statement supporting the government’s request for aid from the
European bailout fund, the EFSF, to help recapitalize Cypriot banks:
“The Central Bank of Cyprus supports the Cypriot Government’s
decision to request financial support from the European Financial
Stability Fund (EFSF), which has been triggered by the need to
recapitalise those Cypriot banks that have not been able to secure
sufficient private capital by the European Banking Authority deadline of
30 June 2012.
“In these challenging economic times, in which pressures on public
finances are already considerable, it is vital to restore the banking
system’s ability to promote economic growth as soon as possible. It is
also necessary to take all the appropriate steps to contain possible
future contagion emanating from the operations of Cypriot banks in other
countries.
Financial support from our European partners will help to ensure
that these objectives are achieved in a timely and orderly fashion,
while safeguarding the stability of our financial system and the economy
as a whole.
The Central Bank of Cyprus looks forward to working closely with
the European Central Bank, the European Commission and the Cypriot
Government to help ensure the success of this endeavour.”
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