Greek storm makes waves in Cypriot credit system
Cyprus’s banks sustained huge losses as a result of the Greek debt write-down, with the two biggest, Bank of Cyprus and Laiki -- which is active in Greece through Marfin -- now being called upon to proceed with significant recapitalization measures.
Bank of Cyprus is already close to its goal (it is seeking another 237 million euros after already having buttressed its main assets by 592 million), though Laiki is still quite far off the mark, as it needs 1.8 billion euros in fresh capital.
The state’s stepping in to help is not out of the question -- especially for Laiki Bank group -- but it will only be able to do so at a time when its own finances are not so precarious.
A 2.5-billion-euro loan from Russia has largely covered Cyprus’s financial needs for 2012, but this money is insufficient to bolster the banking system as well if the need arises.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_15/05/2012_442301
Will Russia step in to save Greece as well as Cyprus?