Cyprus has told the European 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.
There was no further detail from the Cyprus government, but the ratings agency Fitch said the country would need 4bn euros (£3.2bn) to support its banks, the equivalent of almost a quarter of its GDP, or economic output, last year.
Source & Image : BBC
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