As relative political stability settled over Athens, Spain was to formally request up to $127 bn to recapitalise its ailing banks at a eurozone finance ministers meeting on Thursday.

But Spanish Budget Minister Cristobal Montoro insisted that his country would not need a full-blown rescue like Greece, Ireland and Portugal.

"Spain has not been rescued because it does not need to be rescued," Montoro told the country's parliament.

Taking a cue from Spain, Cyprus will probably request next week eurozone aid to save banks which could suffer heavy losses on their holdings of Greek debt, an EU diplomat said.

The Mediterranean island will "first try to get a bilateral loan from Russia" this week of up to 5.0 billion euros, the diplomat said on condition of anonymity.

-- AFP