Cyprus on verge of bankruptcy

Cyprus will become bankrupt in the near future unless it finds 300
million euros to finance its current spending program. The Permanent
Secretary of the Ministry of Finance of the country, Christos
Patsalidis said in an interview to local television stations that if
this does not happen the country will face a default.

The government has demanded 100 million euros from the
telecommunications company Cyta, the electricity monopoly and the
management of the ports of the county. Only Cyta has agreed to finance
the government so far. The ports are ready to give only 34 million
euros. According to Patsalidis, the government has "no plan B", and if
the state company will not agree to finance the budget, the country
faces a technical default.

Cyprus has applied for credit support to the EU and the IMF, but the
agreement with creditors is not expected before the second half of
January.