Cyprus to Request EUR 11 B Bailout - Report

Cyprus will request the amount of EUR 11 B for a bailout to recapitalize its bank system and cover holes in its budget, according to sources quoted by the Bloomberg agency.

On June 25, Cyprus became the fifth eurozone country to announce it will seek financial aid, but has this far not officially specified the amount it will need.

Cypriot banks, which have lost more than EUR 4 B in Greece's debt restructuring earlier this year, need EUR 5 B of fresh capital, according Bloomberg's sources, quoting Finance Minister Vassos Shiarly.

The government, on its part, needs a further EUR 6 B euros to redeem debt and close a budget gap through 2015, writes Bloomberg.

Striking a bailout deal with the troika, consisting the European Commission, European Central Bank and the International Monetary Fund, is essential for the government to pay its bills through the end of the year, Shiarly is quoted as having said.

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