Cyprus's request for a bail-out, which could amount to €17.5 billion, will be considered by eurozone finance ministers when they meet in Brussels on 21 January.
Amid mounting tension in the country, Cyprus's finance ministry denied in a statement on Tuesday (18 December) that the government was at immediate risk of defaulting on its payments and that it had “secured all its current financing needs”.
The announcement came a day after an official from the ministry told the country's parliament that the state could default “within the coming days” if it did not secure €300 million immediately.
Cyprus's banking sector has been particularly badly hit by the crisis in Greece. The ‘troika' of potential international lenders – the European Commission, European Central Bank and International Monetary Fund – is carrying out an assessment of Cyprus's financing needs and is expected to report back in time for January's finance ministers' meeting.