LIMASSOL, Cyprus Jan 11 German Chancellor
Angela Merkel said on Friday Cyprus must pursue economic reforms
but also deserved "solidarity" from the European Union.
Germany, Europe's paymaster, has expressed concerns about
providing bailout funds for Cyprus because of a lack of
transparency in its financial sector. The Mediterranean island
is a popular tax haven for wealthy Russians.
"I would like to note that Cyprus must move forward with
reforms to the economy but on the other hand we must show
solidarity," Merkel told reporters as she arrived in the island
for talks with other EU conservative politicians.
Cyprus applied for a financial rescue last June after its
banks suffered huge losses on the EU-approved writedown on
Greece's debt. Ratings agency Moody's slashed Cyprus's credit
rating three notches on Thursday on an expected rise in the
island's debt burden.