Eurozone confident on Cyprus bailout

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imagesEurozone finance ministers are confident on agreeing a bailout for Cyprus before the end of March. The bailout could be priced at 17bn euros (£ 15bn). Euro group head Jeroen Dijsselbloem expressed his will to help Cyprus, but the details still need to be discussed. This is likely to calm down Germany, which had raised concerns about money-laundering on the island. EU Commissioner for Economic Affairs Olli Rehn praised the breakthrough on money- laundering. He gave notice that Cyprus leaving the Eurozone remains a dangerous possibility. ‘Even if you come from a big EU country, you should be aware that every member of the Eurozone is systemically relevant’ Mr. Rehn was quoted as saying in Germany’s Der Speigel magazine. ‘If Cyprus becomes disorderly insolvent, it is very likely that would lead to it exiting the Eurozone.’ Cyprus’s newly elected President has promised to secure a financial rescue, explaining his top priority is to restore his country’s credibility. Germany has pushed for depositors in Cypriot banks to help pay the rescue, a process called ‘bail-in’. But Cyprus fears this could spark a withdrawal of funds from the country, making its economic situation worse. President Anastasiades has already expressed his opinion against a bail-in as it will mean taking a ‘haircut’ on their investments.