Cyprus will also need bailout, warns bank boss

Cyprus will have to seek bailout funds from the European Union to recapitalise a banking sector pummelled by exposure to Greek debt and must prepare by taking tough steps to shore up its finances, the chairman of the country's second-largest lender said today.

The comments by Cyprus Popular Bank's Michalis Sarris further bolster a growing sense that the island will be the next in line to ask for help from the European Financial Stability Facility.