(Adds quotes, detail)
NICOSIA, March 31 Eurogroup President Jeroen
Dijsselbloem said on Monday he was optimistic that the Cyprus
economy could recover from a crisis that rattled the foundations
of the euro zone a year ago and pushed the island to the brink
"I think there will be difficult times ahead, and yet I
think there will be a new perspective for the economy of Cyprus
... I think the economy of Cyprus has shown to be dynamic and
flexible, and therefore I am optimistic that Cyprus will recover
within a short period of time," Dijsselbloem told reporters in
Cyprus teetered on the brink of financial meltdown in March
2013 after it was forced to wind down a major bank and seized
savings to recapitalise a second bank to qualify for 10 billion
euros in aid from the European Union and the IMF.
It was the first time in the history of the euro zone that
uninsured deposits were seized to recapitalise a bank instead of
passing the burden onto EU taxpayers.
"We considered different options, but this option that came
out was, in the given circumstances, unfortunately inevitable,"
Dijsselbloem said. Cyprus is now following a three-year
adjustment programme which includes privatisations and a
tapering of public spending.
(Reporting by Michele Kambas; Editing by Mark Heinrich)