The Financial Times is reporting on a letter Cyprus President Anastasiades has sent to the troika asking to restructure its bailout. The letter was actually in the news last week and the main point of is problems at the Bank of Cyprus which is finding it difficult to raise cash for day-to-day operations.
Although the letter does not request it explicitly, Mr Anastasiades is in effect asking for further eurozone loans on top of the existing €10bn sovereign bailout, the FT says.
The FT story also gets a comment from a senior eurozone official directly involved in the Cypriot talks who said officials are “puzzled” by the letter but will discuss it on Thursday.
Virtually every bailout needs to be restructured soon afterwards because the assumptions are overly optimistic. Cyprus won’t be any different.