Cyprus urged to back bailout deal

Cyprus’ finance minister urged politicians to approve a first batch of spending cuts and tax hikes agreed with international creditors by December 13, when the other 16 EU countries that use the euro are expected to discuss a bailout deal.

Vassos Shiarly said the only element left to determine in the bailout accord with the troika of the European Commission, the European Central Bank and the International Monetary Fund is how much cash troubled Cypriot banks need.

The banks need to replenish their reserves after taking huge losses of around €4.5bn on bad Greek debt and loans.

Mr Shiarly said that investment firm Pimco and auditors Deloitte, which are currently assessing banks’ needs, will issue a preliminary figure on December 7, while the formal sum will be known by mid-January.

“As a result, you understand that there is an outstanding issue that will remain for some time until the final figure is issued. However, this doesn’t stop us from completing the memorandum (bailout) to the greatest possible degree,” Mr Shiarly said.

Cyprus’ Central Bank governor Panicos Demetriades said that amount will not exceed €10bn.

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