UPDATE 1-Juncker says Cyprus and troika must expedite talks
* Juncker says Cypriot problems very serious
* Island sought bailout from Greek exposure
NICOSIA, Sept 14 (Reuters) - Eurogroup president Jean-Claude Juncker on Friday urged a speedy resolution to bailout talks between the troika and Cyprus, hammered by its exposure to debt-crippled Greece.
"I think Cyprus and the troika have to speed up the process, with no time to lose and I am very confident that an answer to problems of this country, and they are very serious, will be found in the next coming weeks," Juncker told reporters in Cyprus.
Cyprus sought an EU and IMF bailout in June to rescue its largest banks, heavily exposed to Greek debt. Talks with the troika, comprised of the European Commission, the IMF and the European Central Bank, have been inconclusive.
Its unclear how much Cyprus will require. A regulatory capital shortfall of its banks from Greece's debt writedown exceeds 2.4 billion euros ($3.16 billion), more than 10 percent of Cyprus's 17 billion euro GDP.
Some suggestions for the eventual bailout amount are as high as 10 billion euros.
Juncker, who was in Cyprus for an informal meeting of European finance ministers, said a meeting he had with Cypriot President Demetris Christofias was "clearing up the Cypriot intentions".
Leaked documents suggest the troika want salary cuts in an inflated public sector, pension reforms and privatisations, unlikely to go down well with a general election looming in five months.
Cypriot officials say the timing of a new visit by lenders is expected to be clarified next week. ($1 = 0.7606 euros)
- Tweet this
- Share this
- Digg this