Cyprus asks Europe for a bailout It was unclear whether a loan from either country would be forthcoming, giving the Mediterranean island precious little leeway to rustle together €1.8bn for Cyprus Popular Bank by the end of the week. On Monday afternoon, the Cypriot government said it would seek financial assistance from the European Union's bailout funds as the country sought to stem risks to its financial sector from a spillover of Greek exposure. "The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spillover effects through its financial sector, due to its large exposure in the Greek economy," a government announcement said. The move came after earlier on Monday, Fitch downgraded Cyprus to BB+, saying Cypriot banks could potentially need up to €4bn euros in capital primarily on the back of losses in Greece. Fitch said the amount, representing 23pc of Cypriot GDP, was mainly related to exposure in Greece, though a rapidly growing increase in non-performing loans at home was also a factor. It is thought that Cypriot leaders will meet on Tuesday to discuss options for reviving the country's economy.