BRUSSELS, March 23 (RIA Novosti) – Cyprus is facing tough economic future as the country has been left without any “optimal” solution to the current financial crisis, European Commissioner for Economic and Monetary Affairs Olli Rehn said on Saturday.
“Unfortunately, the events of recent days have led to a situation where there are no longer any optimal solutions available. Today, there are only hard choices left,” Rehn, who is also Vice President of the European Commission, said in a statement.
Anxiety spread across Europe on Tuesday after the Cypriot parliament rejected a windfall levy on bank accounts that international creditors, including the EU and the International Monetary Fund, had set as a condition for providing a 10 billion euro ($13 billion) bailout.
The rejected bill envisioned a 6.75 percent levy on deposits of less than 100,000 euros ($128,950) and 9.9 percent on larger deposits.
On Friday, the Cypriot lawmakers approved nine bills that envision restructuring of ailing banks, restricting financial transactions in emergencies and setting up a "solidarity fund" that will act as the vehicle for raising funds from investments and contributions.
Nevertheless, the country still needs to raise 5.8 billion euros to secure the EU bailout package as the European Central Bank has said that unless Cyprus raises billions of dollars by Monday it could lose emergency funds and face inevitable financial collapse.
Eurogroup finance ministers will hold a meeting in Brussels on Sunday in an attempt to agree a financial assistance program for Cyprus depending on progress made by the Cypriot government towards a solution of the current crisis.
Cypriot Finance Minister Michalis Sarris flew home from the Russian capital Moscow on Friday following an unsuccessful attempt to persuade Russia to grant his country financial aid in return for investments in its national banks and gas projects.
Russia said it would consider financial aid to help Cyprus overcome its economic woes only after the EU and the island nation work out a joint plan for its recovery.
