Cypriot bail-out likely to be delayed as report into banking recapitalisation is not yet ready

The Cyprus Central Bank has announced a delay in completion of a study into how much cash its banking system needs as part of an EU bailout package.  The report was expected to be completed on 18^th January but is not yet finalised, and there was no indication of when it is expected to be available.

The delay will come as a blow to the country, which applied for EU financial aid back in June 2012, but which cannot finalise a bail-out loan from the Troika until it has clarity on the amount required for bank recapitalisation.  Eurozone finance ministers are due to meet tomorrow and it had been hoped that final approval of a draft agreement could be obtained at that meeting, but this now appears to be a forlorn hope given the absence of critical financial information.