Cypriot banks have suffered “substantial outflows” from depositors spooked by speculation over forced losses, the island’s finance minister has warned, as he pledged to fight-off radical rescue options that would deal a “fatal blow” to confidence reports the Financial Times. Speaking ahead of Monday’s gathering of eurozone finance ministers, Michalis Sarris told journalists he was determined to agree a long-term bailout for Cyprus this month, broadly in-line with the demands of international lenders.
But he drew the line at forcing losses on uninsured bank depositors and is resisting the detailed terms of other potential bailout conditions, including the execution of a sweeping privatisation programme and an outside audit on money laundering.