NICOSIA - Cyprus Popular Bank says that it is in talks with the Finance Ministry and Central Bank on a possible recapitalisation.
The bank said in a statement Monday that it is discussing the possibility of a government guarantee on a capital issue to help attract private investors and minimize the amount that the state would have to cover.
Cyprus Popular was the most exposed to Greek debt of the country's top three banks. It posted record losses for 2011 of around €3.6b after taking a 76 percent writedown on its Greek government bond holdings.
The bank had said it would need €1.35b to meet EU capital buffer requirements.
(AP)