Cyprus & World News

Any solution must involve a "haircut", says government source

22 March, 2013

Any solution to the Cyprus financial problem must be accompanied by a "haircut" on bank deposits on which the Troika is insisting, if the Republic of Cyprus wishes to obtain a loan from the EU, according to CNA sources.

Parliamentary parties, however, are reacting to such a solution while the government is calling them to approach the issue in the way that would better serve the interest of the country.
A government source at the Presidential Palace stated that time has run out and any delay will lead to a complete collapse of the banking system.

The Government hopes that the political parties will rise to the circumstances at the meeting of the House later Friday afternoon and give solution to the problem.
What should we take into account, the government source said, is that there is no longer any hope from Moscow and all we have left is the Eurogroup.

The state, according to the same source, must first save its citizens, while foreign depositors would come back to Cyprus due to Cypriots’ diligence.