Pecker is a key witness in the case against the former US president, who is accused of falsifying business records to cover up hush-money payment
Fitch Ratings said it lowered Cyprus’ long-term foreign and local currency issuer default rating to BB+ from BBB-, mirroring a similar downgrade by Moody’s Investors Service on June 13.
Fitch said the downgrade was “principally due to Greek corporate and households exposures of the largest three banks — Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank — and to a lesser degree the expected deterioration in their domestic asset quality.”
The downgrade also “reflects a material increase in the amount of capital Fitch assumes the Cypriot banks will require compared to its previous estimate” made in January, it said.
Fitch said the Cypriot banks will require capital injections of potentially up to four billion euros — 24 percent of the island’s gross domestic product — in addition to the 1.8 billion euros already earmarked for Cyprus Popular Bank.
“Even assuming that Greece remains in the eurozone, Cypriot banks will have to bear significant further loan losses as the Greek economy continues to contract over the medium term as well as the deterioration in domestic asset quality,” it said.
Fitch said the scope for raising further capital from the private sector was limited, meaning the government would have to provide the lion’s share.
Cyprus will have to undertake “significant fiscal reform... to absorb the economic and financial cost of an aging population and as part of a broader structural reform effort necessary to enhance productivity and international competitiveness,” it said.
Cyprus’ medium-term economic outlook is weak, it said, adding the economy was expected to “stagnate this year and next.”
It was expected to recover only slowly as “macroeconomic imbalances unwind and the headwinds from the ongoing eurozone and Greek crises persist.”
“However, as these imbalances are resolved, Fitch expects the underlying fundamentals of the economy to support a resumption of economic growth over the medium term.”
Pecker is a key witness in the case against the former US president, who is accused of falsifying business records to cover up hush-money payment
The oil and gas conglomerate and Fifa, the world governing body, sign major sponsorship agreement
Toomaj Salehi risks being hanged after the conviction on the Shariah charge of "corruption on Earth" by a Revolutionary Court
Aid groups warn any invasion would add to already-catastrophic conditions for Gaza's 2.4 million people
The American they will face Australia and Serbia on July 15 and July 17 as part of their preparation for the Paris Olympic Games
The leaders emphasise that the deal to release the hostages would bring an immediate and prolonged ceasefire in Gaza
Dubai-based Sumit Augustine has had a philosophical approach towards spending
The regional upswing also defies oil production cutbacks