EU to bail out Cyprus

BRUSSELS (AFP) ― Eurozone finance ministers said Monday that a long-delayed bailout for Cyprus could be fixed within 10 days after Nicosia agreed to submit its financial sector to independent scrutiny amid concerns of large-scale money-laundering.

Long resisted by the previous Cypriot government, the first face-to-face talks between the other 16 ministers from the euro currency area and their new Cypriot counterpart, Michael Sarris, were hailed by Eurogroup chairman and Dutch Finance Minister Jeroen Dijsselbloem after barely four hours of talks in Brussels.

“The first exchanges with the Cyprus government have been useful and with the new government in place, we are confident that a swift conclusion to a Memorandum of Understanding (bailout deal with eurozone and IMF creditors) can be reached.”

Dijsselbloem said ministers “agreed to target political endorsement of the program around the second half of March.”

The key change, the Dutchman said amid negotiations that stretch back to June 2012, was that the new Cypriot government agreed to “an independent evaluation” leading to concrete action on “anti money-laundering.”

“We reiterate our readiness to aid Cyprus in its adjustment effort including for its banking sector,” he added.

Sarris was named by incoming Cyprus President Nicos Anastasiades, who has vowed to save the near-bankrupt Mediterranean island from financial meltdown with the “earliest possible” bailout.

Eurozone ministers had put rescue negotiations on hold until after last month’s election.

The anticipated 17-billion-euro ($22.3 billion) rescue package for Cyprus is worth roughly the same amount as a year’s output for the Cypriot economy.