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Cyprus on financial brink from Greek exposure | Reuters

Cyprus is racing to meet an end-June deadline to pump 1.8 billion euros ($2.24 billion) into Cyprus Popular Bank CPBC.CY – heavily exposed to Greek bonds – but will struggle to attract investors as long as the outcome of this month’s election in Greece is unclear.

The island nation’s only other option is finding the money – about 10 percent of its economy – itself, raising the odds that it will become the fourth euro zone country to be bailed out after Ireland, Portugal and Greece.

It is an increasingly familiar example of how quickly problems at just one bank can hurt government finances – even if in this case, the sector was profitable and well regulated, and had successfully raised capital in the past.

via Cyprus on financial brink from Greek exposure | Reuters.

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