Eurogroup calls on Cyprus to warn banks

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Juncker: "We are discussing the best way to work"

A strong call for Cyprus to apply to the Support Mechanism is reflected in the position of Jean-Claude Junger, who expressed the readiness of the Eurogroup to discuss with Cyprus the best way to address the challenges facing…

Shortly afterwards, Finance Minister Vassos Siarlis told CNBC that Cyprus had options, but for the first time expressed its preference for an appeal to the European Financial Stability Facility.

Eurogroup President Jean-Claude Junger sent a double message to Nicosia.

On the one hand, he expressed the readiness of the House to discuss the best ways to address the challenges facing Cyprus, photographing the European Financial Stability Facility. On the other hand, he pointed out that the challenges for Cyprus are not limited to the recapitalization of banks, but extend to the whole spectrum of the economy, with all that implies for the scope of the possible recourse to the Mechanism.

Speaking after the completion of the work of the Eurogroup, Jean-Claude Junger said: "We are ready to discuss with the authorities in Cyprus, the best way to overcome the challenges facing their financial sector and the Cypriot economy in general." He recalled the interconnectedness of the Cypriot and Greek economies, the exposure of Cypriot banks in Greece and the haircut of Greek bonds, while taking care to point out that in addition, "Cyprus faces very serious imbalances" in competitiveness and the current account balance.

The Minister of Finance, Vassos Siarlis, informed the Eurogroup about the package of measures approved by Nicosia, while referring to the possibility of securing a loan from a third country, as well as the possibility of applying to the European Financial Stability Fund.

He expressed similar positions in the context of statements on the CNBC network. He said that Cyprus has options, but for the first time the Minister of Finance characterized as a preferred option the recourse to the European Financial Stability Fund.

The Cypriot Minister of Foreign Affairs had separate meetings with his German counterpart Wolfgang Schieble and his French counterpart Pierre Moscovici, with whom he discussed issues related to the assumption of the EU Presidency by Cyprus.

Source: ANT1