Friday, January 11, 2013 9:31 am
Merkel: Cyprus must embrace reforms to get bailout
The Associated Press
As she arrived for a European conservative parties' conference in Cyprus, Merkel said Friday that the country needed to embrace reforms if it hoped to get any bailout.
Cyprus has already enacted public sector pay cuts and tax rises as part of a draft bailout deal it has negotiated with the European Commission, the European Central Bank and the International Monetary Fund. It is resisting calls for privatizations, however.
Cypriot banks took huge losses on bad Greek debt and loans and their rescue needs are still being calculated. The estimate will affect the size and terms of Cyprus' bailout deal.