President of Cyprus insists on commitment to bailout terms

Julian Harris
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CYPRUS’ government yesterday insisted that it is fully committed to the bailout that saved the island nation from bankruptcy earlier this year, following reports that its President had complained about the terms of the rescue funds.

Nicos Anastasiades sent a letter to the so-called troika of lenders – the European Union, International Monetary Fund and European Central Bank – saying: “It is my humble submission that the bail-in was implemented without careful preparation.” The letter, highlighted last week by the Open Europe think tank, was reported in the Financial Times on Tuesday, prompting a government spokesman to respond.

“I reiterate once again that the Cyprus government is fully committed to applying the terms of the memorandum and has already embarked on that road,” he said.

The original letter to the troika had noted that policies such as capital controls are making business much more difficult to conduct for Cypriots, and would hurt depositors in the long term.