Breaking: Cyprus call 911
Frankfurter Allgemeine Zeitung:
Cyprus asks for emergency help from the European Central Bank (EFSF or ESM):
1) Russia has offered 5 billion EUR – which might have uncomfortable strings attached.
2) GDP of Cyprus: 17.5 billion euros.
3) Cyprus takes over chairmanship in the EU on July 1st. Not a smooth timing, considering the request for a bailout.
The main problem seems to be the connection to the Greek banks. Cyprus’ economy is very closely tied to Greece’s. The small island country also has cultural ties to Greece.
Will Cyprus go to Russia for funding? Well after the collapse of Iceland – ill gotten gains must have sought new refuge. So that source seems unlikely.
Cyprus will probably get a bailout from the EU, as the size of bailing out Cyprus is much smaller than compared to countries like Spain, Greece and other larger European economies.