Cyprus is a country that poses a systemic risk for the Eurozone and this is something we have pointed out, Government Spokesman Stephanos Stephanou has said, invited to comment on statements made by Jorg Asmussen, Member of the Executive Board of the European Central Bank.
In an interview with German business daily “Handelsblatt” published on Monday, Asmussen noted that if Cyprus gets no external help, it will slide into default. He also warned that failing to help a systemically relevant euro zone country would "put at risk progress made last year on the euro crisis – and that would have high financial and political costs".
Speaking the press following a meeting of the Cabinet, Stephanou said that “despite the size of the country and its economy, a member of the Eurozone is a systematically relevant euro zone country and this is how it should be approached by the EU and the Eurozone as well as their members”.
Furthermore he said that EU should demonstrate its solidarity towards Cyprus so that the country overcomes to a great degree the difficulties it is faced with and which were generated by the exposure of Cyprus banks to Greek bonds.
Asked about Asmussen’s statement that the aid program should be concluded the soonest, Spokesman said that this is Cyprus’ position as well. He also went on to say that Asmussen implies that the aid program for Cyprus is delayed due to certain politics in Europe, related to the elections or otherwise.
In his statements Spokesman also noted that the ECB official has said that Cyprus’ difficulties are related to the banking system and the need for restructure.
In regards to the allegations for money laundering, Spokesman recalled that during the last years, Cyprus has been inspected by international and other committees and organizations on the matter and their reports say that Cyprus has made a significant progress in the direction of fighting the problem, which he noted, is extended internationally.
He described the attacks towards Cyprus as unfair and unfounded , noting that the Government has stressed that the economy is open to further inspection, as long as this is done according to EU and international procedures.
Accusations about Cyprus banks being used for money laundering purposes have emerged in the past few months, amid Nicosia’s negotiations with the Troika to secure a bailout deal. Reports, especially in the German Press, were echoed from politicians, government and EU officials.
Finance Minister, House Speaker and MPs have visited Brussels and other European capitals in order to brief EU officials on the country’s compliance with international and European practices.
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