Reuters logo
No ECB liquidity for Cyprus banks without bailout: Asmussen
March 20, 2013 / 10:22 AM / 5 years ago

No ECB liquidity for Cyprus banks without bailout: Asmussen

FRANKFURT (Reuters) - Banks in Cyprus are not solvent without them being quickly recapitalized, and the European Central Bank can only provide liquidity to solvent banks, ECB Executive Board member Joerg Asmussen was quoted as saying on Wednesday.

European Central Bank (ECB) Executive Board member Joerg Asmussen attends an interview with Reuters in Berlin, February 22, 2013. REUTERS/Pawel Kopczynski

The ECB said on Tuesday, after Cypriot lawmakers overwhelmingly rejected a key element of a proposed bailout, that it remained committed to providing liquidity within the existing rules.

“We did not threaten (to cut off liquidity), but just pointed out as a matter of fact that we can provide emergency liquidity only to solvent banks and that the solvency of Cypriot banks cannot be assumed if an aid program is not agreed on soon, which would allow for a quick recapitalization of the banking sector,” Asmussen told German weekly Die Zeit in an interview conducted Tuesday evening.

He was also quoted as saying that no other country in the euro zone had a banking sector crisis comparable to Cyprus.

Reporting by Sakari Suoninen and Eva Kuehnen

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below