Cyprus moved closer to becoming the fourth eurozone country to need a bail-out after Moody’s downgraded its bonds to just two notches above junk, saying the island’s recent political turmoil and exposure to Greek debt raised questions about its ability to service its own debt.
Senior European officials insisted there were no special talks under way with Nicosia, although they were monitoring the situation and did not believe a bail-out was imminent.
“It is not on my immediate radar screen,” François Baroin, France’s finance minister, told the Financial Times.
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