Advert

Cyprus downgraded further

International credit rating agency Fitch has downgraded Cyprus a couple more notches into junk status amid concerns that the government's support for the country's troubled banks could cost more than previously thought.

The agency cut its rating on Cyprus to B from BB - and warned of more possible downgrades as it predicted that the banks' recapitalisation needs could be as high as 10 billion euros.

That would push the size of the rescue package that Cyprus is trying to finalise with the other 16 European Union countries which use the euro and the International Monetary Fund to more than 17 billion euros (£14.3 billion).

That, Fitch said today, would drive the country's debt load to more than 140% of its annual gross domestic product, 20 percentage points more than the agency previously estimated.

Advert

Comments are submitted under the express understanding and condition that the editor may, and is authorised to, disclose any/all of the above personal information to any person or entity requesting the information for the purposes of legal action on grounds that such person or entity is aggrieved by any comment so submitted.

At this time your comment will not be displayed immediately upon posting. Please allow some time for your comment to be moderated before it is displayed.

For more details please see our Comments Policy

Comments not loading? We recommend using Google Chrome or Mozilla Firefox with javascript turned on.
Comments powered by Disqus
Advert
Advert