Published January 11, 2013
BERLIN – The European Union's top economic official Olli Rehn was quoted on Friday as ruling out a debt restructuring for euro zone member Cyprus, currently in talks with the EU and the IMF on a financial rescue package.
"A haircut is not an option for us," Rehn, the European Economic and Monetary Affairs Commissioner, told the German business daily Handelsblatt in an interview.
Ratings agency Moody's slashed Cyprus's credit rating three notches late on Thursday on an expected rise in the Mediterranean island's debt burden. Cyprus applied for a financial rescue last June after its banks suffered huge losses on the EU-approved writedown on Greece's debt.
(Reporting by Gareth Jonesm editing by Erik Kirschbaum)