The Bank of Cyprus, the island's largest lender, said on Wednesday it will ask the state for 500 million euros ($625 million) to meet a 30 June deadline to bolster its regulatory capital.
The bank said that it needs a total of 1.56 billion euros to recapitalise against the global financial crisis but would fall short of securing the full amount.
It said the central bank had rejected a request to extend the deadline so that it could obtain the full amount.
"In view of the above, the Bank of Cyprus group has informed the central bank and the finance ministry that it will apply to the state for a temporary form of capital support in the region of 500 million euros," BoC said.
It said it wanted the funding to in the form of non-equity capital as is the case with banks of other member states that have needed this kind of support.
BoC insisted that despite needing state aid it remains "healthy" with "significant pre-provision profitability and essential basic equity."
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