Moody’s downgrades Cyprus bonds / Cyprus dissolves cabinet as crisis grows / Storm gathers over Cyprus

Article reported that Cyprus moved closer to becoming the fourth eurozone country to need a bail-out after Moody’s downgraded its bonds on the 27 July 2011 to just two notches above junk, arguing the island’s recent political turmoil and exposure to Greek debt raised questions about its ability to service its sovereign debt.

EurActiv reported on the 28 July 2011 that Cyprus's cabinet tendered its resignation bowing to political and public pressure for a broad reshuffle after the munitions blast that has threatened to force the island into asking for an EU bailout.

EurActiv, 28.7.11: Cyprus government resigns amid bailout rumours http://www.euractiv.com/en/euro-finance/cyprus-government-resigns-amid-bailout-rumours-news-506813

Politis, 28.7.11: Government crashes as debt crisis looms (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/809391-government-crashes-debt-crisis-looms

Deutsche Welle, 28.7.11: Entire Cypriot cabinet resigns under pressure http://www.dw-world.de/dw/article/0,,15273655,00.html

ESO: Background information: Cyprus governor warns of emergency after blast http://www.europeansources.info/record/cyprus-governor-warns-of-emergency-after-blast/

EUObserver, 29.7.11: Cyprus government resigns amid economic woes http://euobserver.com/9/32667

EurActiv, 27.7.11: Cyprus rating downgraded, no comment from Commission http://www.euractiv.com/en/euro-finance/cyprus-rating-downgraded-comment-commission-news-506798

Politis, 5.8.11: New cabinet to combat crisis (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/837211-new-cabinet-combat-crisis

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