Eurogroup meeting to discuss Cyprus bailout

Cyprus will be represented by Finance Minister Vasos Shiarly, who will be called upon to respond to allegations of money laundering in Cyprus. Some eurozone member states have asked for an investigation into those allegations by an independent organization. Shiarly has repeatedly stated that the Cypriot Government does not object to a new investigation into Cyprus’ system provided it is carried out by an internationally recognized organization with the necessary expertise.

As regards foreign media reports that Cyprus’ lenders demand a haircut of bank deposits, Shiarly said that the Troika (EC, ECB, IMF) has never raised such an issue, reassuring that deposits are protected by Cypriot legislation.

The IMF Cyprus team will also be in Brussels to continue discussions on Cyprus’ bailout with officials from the European Commission and the European Central Bank. The discussions are not expected to yield any results since the IMF maintains its objections as regards the viability of the Cyprus debt.

Other issues to be discussed at today’s Eurogroup are the euro crisis and the political uncertainty ahead of the elections in Italy and Germany.