Moody’s: Cypriot banking system will require an additional 1.5 billion euro

Moody’s Investor Service said on October 3 2013 that it will maintain its negative outlook concerning the Cypriot banking system, estimating that due to the bigger than expected recession and the worsening of its assets quality, an additional financial support of 1.5 billion euro will be required.

In a report issued today, the ratings agency said that recession in 2013 will reach 12 per cent of the GDP (in comparison with a previous prediction made by the Troika’s representatives for a recession close to 8.7 per cent) and 6.4 per cent in 2014 (3.7 per cent the Troika’s estimation) and noted that the financial environment will be characterised by a harsh decline of domestic consumption, which will reflect a shrinking of household incomes in addition to a rapid increase in unemployment.

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(Photo: Melissa Wall/