Cyprus' Popular Bank seeking state aid

The Cyprus' Popular Bank said yesterday it was in talks with the finance ministry and the Central Bank about state guarantees to raise fresh capital after being battered by the Greek debt write-down, as Cyprus Mail reports. Cyprus' second-largest bank needs a 1.8 billion euros cash injection by a June 30 deadline to increase its regulatory capital to 9% to meet European Union requirements. Popular posted a 2.83 billion euros loss for 2011. The bank has said it would raise the amount via an equity issue, either through a rights issue to existing shareholders or via a private placement. The bank said it was discussing the possibility of the Republic of Cyprus underwriting the capital issue, offering incentives for existing and new investors to participate.