Cyprus expects similar solidarity to Greece

(FRANKFURT) - Cyprus expects to receive the same solidarity from its EU partners as that shown to Greece in bailout talks, the country's finance minister said in a German newspaper interview on Tuesday.

"We're hoping for the same sort of solidarity, but that hasn't been the case so far," minister Vassos Shiarly told the business daily Handelsblatt.

Cyprus asked in June for a bailout worth about 17 billion euros ($23 billion), equal to its annual economic output.

But progress has been slow given concerns over its banks and allegations of money laundering due to fears that Russian criminal elements are active in the country.

Nicosia is not looking for a debt "haircut" or write-down similar to that afforded to Greece in October 2011, Shiarly said.

That decision had been "a catastrophe for Cyprus," he said.

"Not only because the decision cost us a quarter of our gross domestic product and destroyed our economy. But for me, it's a question of principle. Debts cannot be wiped out," the minister continued.

"States must find a way to meet their commitments. One can talk about the modalities of repayment, over more flexible interest rates. But debt remains debt and must be repaid," Shiarly insisted.

The minister said Cyprus was "not looking for handouts, but loans, every cent of which we will pay back."

Cyprus's financing needs are currently assured until the end of April, but Nicosia has to find 1.4 billion euros ($1.90 billion) by June to refinance its debt.

"If agreement on an aid package can be reached by then, then the refinancing is assured," Shiarly said.

Asked about the financing needs of Cypriot banks, the minister said the figure of 10 billion euros floated by analysts was exaggerated.

And he rejected as "unfair" the allegations of money laundering made against his country's financial sector.