Cyprus

Vice-President of EU Commission rules out PSI for Cyprus

by fm

13th February 2013

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1 min read

The European Commission is not working on any private sector involvement option for Cyprus, Vice-President of the European Commission and member of the Commission responsible for Economic and Monetary Affairs and the Euro, Olli Rehn, has said.

Replying to a question, Vice-President Rehn stressed that it’s the Commission’s firm position that Greece was a unique case.

He reiterated that the aim is to ensure fair burden-sharing of the cost of restructuring of Cypriot banks, in accordance with European rules on state aid.

We are working on a solution that will ensure debt sustainability and financial stability, Rehn said, noting that discussions on Cyprus continue.

I hope that the decision will be taken soon, in March, he concluded.

Cyprus applied on June 25 for financial assistance from the European Stability Mechanism estimated at 17.5 billion euro which is equivalent to its GDP. The programme is expected to be agreed on Eurogroup level in March.