EU denies talks on Cyprus bailout

THERE are no talks under way to draft an aid plan for Cyprus, the European Commission has said.

“The Cyprus economy is fundamentally healthy. Certain decisions need to be taken about reforms… (but) there is no aid plan being discussed at any level,” spokeswoman Chantal Hughes said yesterday.

Ratings agency Fitch downgraded Cyprus’ credit rating on Wednesday, saying the island was headed for a European Union bailout despite planned tax hikes and spending cuts to tame a runaway deficit.