Eurozone ready to bail out embattled Cyprus

PanARMENIAN.Net - The eurozone is ready to bail out embattled Cyprus in coordination with the International Monetary Fund, finance ministers from the 17-nation single currency area said Wednesday, June 27, AFP reported.

"The Eurogroup acknowledges that an adjustment program seems warranted at this stage and considers responding favorably to it," the ministers said in a statement issued after a conference call.

"The Eurogroup also welcomes the request of Cyprus for financial assistance from the IMF," it added.

The conference call followed a formal request Monday for aid from Cyprus and comes on the eve of an EU summit aimed at stemming contagion in Europe's sovereign debt crisis, now in its third year.

Financial assistance would be through the eurozone's rescue fund, the European Financial Stability Facility (EFSF), or its successor the European Stability Mechanism, which is to be set up next month.

The next step will be for the European Commission, the European Central Bank, Cypriot authorities and the International Monetary Fund "to agree on a program".

This would set the amount needed by Cyprus as well as spell out the reforms it would need to carry out in return to put its financial house in order.

Cyprus will be the fifth eurozone nation to have requested aid after Greece, Ireland, Portugal and Spain.