Cyprus becomes fifth victim of eurozone crisis

Cyprus has told European authorities it intends to apply for a bailout, making the country the fifth eurozone country to request international aid.

According to Cypriot authorities, the bailout is required to shore up its flagging banking system, which is heavily exposed to the Greek economy, the BBC reports. Its banks have suffered due to their exposure to Greek government bonds, and are facing heavy losses on loans made to Cypriot businesses hit hard by Greece's recession. The news comes ahead of a two-day EU summit later this week, where authorities are expected to finalise a plan to rescue the euro. Shares in Italy, Spain and Greece fell sharply yesterday amid concerns policymakers will be unable to reach agreement. Spain'...