Cyprus Applies for Bailout

Weeks after Spain said it would seek European Union aid in recapitalizing its banks, Cyprus applied for bailout funds on Monday. In a statement, government officials cited the threat of financial contagion spreading from Greece. “The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spillover effects through its financial sector, due to its large exposure in the Greek economy,” read a government statement. Officials in the tiny island nation became the fifth euro zone country to ask for financial assistance from the European Union.