Eurozone finance ministers to discuss Cyprus bailout issue

Eurozone finance ministers to discuss Cyprus bailout issue Zeebiz Bureau

Dublin/New Delhi: A two-day meeting of European Union finance ministers, starting on Friday will seek to contain the fallout of a messy bailout of Cyprus, as per news wire report.

Ministers are also set to debate the chaotic bailout of Cyprus.

Cyprus is also expected to sell 400 million euros' worth of gold reserves, and will have to raise corporate tax and capital gains tax rates at a time when its economy is forecast to shrink more than 12 percent in the next two years.

Part of this debate concerns possible direct recapitalisation of banks by the euro zone's bailout fund - a step meant to break the vicious circle between indebted governments and shaky banks.

With Agency Inputs