Economic Recovery: Eurozone approves Cyprus bailout

DUBLIN: Eurozone finance ministers formally approved on Friday the terms of a problematic Cyprus debt rescue that will cost Nicosia far more than first thought, with the government seeking additional help. It had appeared earlier, amid some confusion, that Cyprus wanted more bailout aid after leaked documents indicated a sharp increase in the overall amount needed to €23 billion from the €17 billion agreed last month. European Union (EU) Economic Affairs Commissioner Olli Rehn said however there was no need for confusion because the lower figure was net, and the higher, was gross financing needs, with “additional financial buffers, to allow for unexpected fiscal developments and banking sector needs.” He also warned that accurately forecasting the depth of the recession in Cyprus was impossible, with the economy possibly shrinking by up to 15 percent this year alone. The EU welcomed the successes of their bailouts to Ireland and Portugal, recently extending their payback period.

Published in The Express Tribune, April 14^th, 2013.

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