Juncker, Asmussen say no haircut on Cypriot debt, yet

Outgoing Eurogroup chief Jean-Claude Juncker has dismissed the possibility of writing down Cypriot sovereign debt, saying that would risk the credibility of the euro zone.
Echoing similar concerns, European Central Bank board member Joerg Asmussen said that writing down Cypriot sovereign debt is not up for question now as it is not yet clear how much money the island will need to rescue its banks.
Cyprus Finance Minister Vassos Shiarly on Thursday dismissed as “unfounded” any suggestion that the International Monetary Fund is seeking a writedown of the island's debt before it agrees to participate in a multi-billion euro bailout.
"I expect that a haircut will not be part of the instruments that will be used with priority (in Cyprus). I want to exclude that possibility from my side," Juncker added.
"We didn't say all Greek speaking countries, we said Greece. It is part of the credibility to stick to the signals you have sent," he told German radio
"There is no question of a haircut for Cyprus now … because we have (only) a preliminary financing need for the banks in Cyprus. We will get the final numbers in mid-January," ECB's Asmussen told German TV station ARD.
"It is already foreseeable that after the final data, the financing need will be so high that the debt level will be very high and unsustainable," he said, adding that measures to achieve a budget surplus and privatisations would then be looked at.