UPDATE – Cyprus says bailout options open, no decision

* Cyprus keeps choices for bailout open

* Government refuses to apply any EU mechanisms

Cyprus is still not decided on whether it should apply for EU rescue to help fund its second main bank but is yet to apply for any bailout.

Government’s spokesman, Stefanou also made a statement concerning the current reports that appear to suggest that Cyprus has opted to apply for EU mechanism and that it has made calls to that effect, saying that there haven’t been any such decisions or investigations with intent to seek admission to bailout mechanism.

He however added that the government is currently considering a couple of decisions concerning the funding of the bank and one of the choices is to apply for an EU bailout.

Cyprus also gave signs of an international bailout by the end of June as choices decrease for rescuing it bank, which are facing threats from Greece.

The country is faced with a task of rescuing its second main lender, the CPB, before the end of June. Remember that 30^th June is the day that Cyprus will assume the revolving EU presidency for six consecutive months.

Cyprus which had been shut from the financial markets for one year requires 1.8 billion euros, which is equivalent to 10% of its GDP, just to rescue the CPB.

The figure is estimated to rise incase Greece, to which the bank is greatly exposed to, exits the currency union.

Last year, Cyprus was forced to obtain a bilateral loan of 2.5 billion euro from Russian in an attempt to refinance its debs and deficits this year. The government has also admitted that it is considering a bilateral loan as one of its options and rumor has that it has already contacted China.

Some people think that the government is planning to contact Russia for a loan. Reports from the media indicate that president Demetris Christofias has been to the Russian embassy recently.

The government has also refused to specify who exactly their interlocutors are regarding the bilateral options. The country’s finance minister, who had earlier noted that the application for a bailout to the EU could be comprehensive and not just for bank funding, declined to give his view to journalists on Tuesday, saying any comments should come from the government spokesman.

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