Cyprus is on the threshold of the Support Mechanism

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"It's a serious possibility," he said

Cyprus is located in the lobby of the Bank Support Facility, known as the EFSF. On Tuesday, amid a new political controversy, the government officially acknowledged that the country's recourse to the Mechanism was "a serious possibility". 

The statements were made by the Deputy Government Spokesman, Christos Christofides, who noted that the appeal is made because of the banking system, arguing that the state of public finances does not refer to the Mechanism.

However, according to Mr. Christofides, "in recent days, a paraphilology has been developing in relation to taking measures for the economy", because the goal of some is to "cause panic to push the government to take anti-popular measures".

The climate in the Cypriot economy is still aggravated by the uncertainty in Greece and the scenarios for the country's exit from the euro. This resulted in a dip in bank shares yesterday, with the share of Bank of Cyprus being worth 23,6 cents and Laiki 7,7 cents. The shares of Greek banks on the Athens Stock Exchange also recorded large losses.

Source: FILELEFTHEROS