Hollande against 'draconian' bailout for Cyprus

(PARIS) - French President Francois Hollande on Friday urged a troika of international lenders not to impose "draconian" measures on Cyprus to rescue its Greece-exposed economy.

Hollande, speaking after a meeting with Cypriot counterpart Demetris Christofias, said France wanted a solution that would allow "Cyprus to emerge from its difficulties and at the same time not impose conditions that are too draconian."

He said the bailout package must kickstart growth in the short-term, adding that a solution should be found at a meeting of eurozone finance ministers in Brussels on November 12.

"This will be the best goal not only for Cyprus but for Europe," he added.

The European Commission, European Central Bank and International Monetary Fund reportedly want Cyprus to cut state payroll by 15 percent, shave 10 percent off welfare benefits, scrap the inflation-linked cost-of-living allowance and roll back government-subsidised housing finance.

According to the Cypriot media, the government hopes to cut the debt gap by slightly more than one billion euros ($1.28 billion) by the end of 2016 rather than the 975 million euros the troika seeks by 2015.

The lenders proposed remedy to soaring debt is 80 percent through expenditure cuts and 20 percent via increased taxes.