Minister: Cyprus not doomed yet

Cyprus still has options open to find urgently-needed funds to recapitalise its banks, either through the EU rescue fund or through a bilateral loan, its finance minister said yesterday. “We are optimistic we will get the financing we need to recapitalise the banks, whether that will be through a bilateral agreement, or through the mechanism, the EFSF,” finance minister Vassos Shiarly said. “We believe that with a new Greek government now swifter arrangements can be made [in this direction].” Cyprus faces a regulatory deadline to find €1.8bn to recapitalise its second largest bank by the end of this month after its balance sheet was damaged by a write-off of Greek debt earlier this year.