BERLIN, April 12 The finance minister of
Luxembourg said on Friday that Europe and the International
Monetary Fund could not increase their 10 billion contribution
to a bailout for Cyprus despite news that the cost to the island
is going to be higher than expected.
"I believe the policy will be that the volume will remain at
10 billion," Luxembourg's Luc Frieden told German radio from
Dublin, where European Union finance ministers were due to meet.
Restructuring its banks will eventually reduce the island's
financing needs and other measures would help it bridge the gap,
he said. Cyprus was originally meant to raise 7 billion euros
but it may now have to contribute 13 billion to a total package
now expected to cost 23 billion euros.
"I know that right now (financing needs) are somewhat higher
for the period from 2013-2016, but we cannot do any more,"