Cyprus to ask for bailout help

25 June 2012 Last updated at 12:10 ET

Continue reading the main story

• Q&A: Spain's woes
• Keeping the euro together
• Who's afraid of the euro crisis?
• Eurozone crisis: Global reactions

Cyprus has told the Euroean Union that it intends to apply for financial assistance.

It has told the authorities that it needs help to shore up its banks, which are heavily exposed to the Greek economy.

In a short statement, the government said the help would contain the risks to the Cypriot economy.

Earlier, Cyprus's credit rating was cut to junk status by Fitch, making it very hard for it to raise funds itself.