Cyprus Finance Ministry says banks will recapitalize on their own, won't need ...
20.05.12
The bureau made its remarks a day after international ratings agency Fitch downgraded the eurozone member by a score to BBB-, a step above junk status.
Fitch said the downgrade was mainly due to the large Cypriot banking system’s ample exposure to Greek debt and its greater capital needs in light of the higher probability that banks will take a hit on Greek government bonds that exceeds 50 percent.
Fitch said Cypriot banks would necessary to almost double the €900 million ($1.18 billion) — or 9.9 percent of entire domestic product — to build an adequate buffer against losses on their Greek revealing if the “haircut” on Greek government bonds reaches 70 percent.
Beau id & Poor’s became the first ratings agency to push Cyprus into junk territory with a two-notch slipping earlier this month. Moody’s also rates the island just above junk.
Cyprus domination spokesman Stefanos Stefanou on Saturday called the downgrades unfair.
Source: Washington Post