Cyprus says banking sector talks with troika done

Last Updated: Sun, Nov 18, 2012 22:31 hrs

A spokeswoman for Cyprus' central bank says talks with potential creditors on fixing the country's troubled banking sector have wrapped up, signaling progress in ongoing bailout negotiations.

Aliki Stylianou said Sunday the development puts banks on track to regaining credibility after losing billions on bad Greek debt.

Cyprus requested financial aid in June from the European Commission, the European Central Bank and the International Monetary Fund. Disagreements with the "troika" still remain, such as privatizing state-owned firms.

But a bailout hinges on how much money banks will need to recover and a preliminary figure is expected later this month or early December.

The news comes after international credit rating agency Moody's warned on Friday that it may downgrade Cyprus deeper into junk because of the slow pace of bailout talks.

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