The 23-billion-euro bailout for Cyprus does not mean that savers will be hit by a new “haircut” on deposits, the government spokesman said on Friday.
“The European Commission’s assessment … raising the financing needs of Cyprus from 17.5 billion to 23.5 billion … in no way indicates that a de facto new recapitalisation will be imposed on banks or any extra charges to depositors,” Christos Stylianides told reporters.
He said the extra 6 billion euros estimated by the European Commission puts no additional pressure on the eastern Mediterrranean island’s economy.
“No additional needs arise from the estimates of the European Commission for the needs of Cyprus beyond those already configured in the memorandum.”
The European Union’s Economic Affairs Commissioner Olli Rehn said in Dublin the lower figure was net and the higher, gross — with “additional financial buffers… to allow for unexpected fiscal developments and banking sector needs.”
Eurozone finance ministers meeting in the Irish capital on Friday formally approved the terms of the Cyprus debt rescue that will cost Nicosia much more than initially calculated.
“The 23.5 billion referred to in the assessment of the European Commission has already been taken into account and assessed in the final configuration of the memorandum and the loan agreement which the Eurogroup gives its final decision on today,” Stylianides said.
No new haircut for Cyprus depositors: govt
