Rehn: Troika works for achievement of a Cyprus bailout deal in March

Vice President of the European Commission, Olli Rehn, has said that the Troika works for the achievement of an agreement on a Cyprus bailout in March.

In statements Tuesday to the press after the conclusion of the ECOFIN Council, Rehn referred to the Eurogroup meeting which took place Monday in Brussels.

He noted that after the Eurogroup meeting additional meetings took place during which it was agreed that a Troika team (European Commission, European Central Bank and International Monetary Fund) would return to Cyprus to discuss with the Cypriot authorities with the aim to reach an agreement.

We work for the achievement of a solution within March as regards the adjustment program, while as far as money laundering is concerned, the intention of the Cypriot authorities is to have an outcome during the month”, Rehn said.

He added that the evaluation will be carried out by the Council of Europe’s Moneyval, by an independent expert and an independent accountant, who will be selected through competition.

According to Rehn, this agreement constitutes an important step and an important tool, in order to ensure the full implementation of the framework against money laundering to address any concerns raised by some Eurozone Parliaments and the European Commission.

The Eurogroup, which held a meeting in Brussels Monday, noted Monday that with the new government now in place in Cyprus, it is confident that a swift conclusion of the negotiations towards a Memorandum of Understanding for a Cyprus bailout can be reached.

Excluded from international capital markets, Cyprus has requested financial assistance from the EU bailout mechanism after its two largest banks sought state aid following massive losses of their Greek bond holdings estimated at €4.5 billion, as a result of the Greek sovereign debt haircut.