Cyprus Writeoff Prospect Roils Policy Makers Plotting Bailout
This article is for subscribers only.
European policy makers struggled with the prospect of a writeoff of Cyprus’ debt, stuck between their pledge that Greece was a one-off and an International Monetary Fund push for sustainable finances there.
It’s “foreseeable” that Cyprus’ debt level after a bailout to aid its banks will be so high that “it is no longer sustainable,” European Central Bank Executive Board member Joerg Asmussen said on Germany’s ARD television today.