Eurozone finance ministers say after a conference call that they are favourable to a request for financial help from Cyprus in co-ordination with the International Monetary Fund (IMF).
"The Eurogroup acknowledges that an adjustment program seems warranted at this stage and considers responding favourably to it," the ministers said in a statement, adding: "The Eurogroup also welcomes the request of Cyprus for financial assistance from the IMF."
Wednesday's conference call followed a formal request for aid from Cyprus on Monday and comes on the eve of an EU summit crucial to stemming contagion in Europe's sovereign debt crisis, now in its third year.
Finance ministers from the 17-nation eurozone said in the statement that the next step was for the European Commission, the European Central Bank, Cypriot authorities and the International Monetary Fund "to agree on a program."
This would set the amount needed by Cyprus as well as spell out the reforms it would need to carry out in return to put its financial house in order.
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