FRANKFURT – European central Bank President Mario Draghi said on Thursday that Cyprus's initial decision to charge a levy on insured as well as uninsured banks depositors was a mistake.
"That was not smart, to say the least, and was quickly corrected," he said.
Draghi also told a news conference that Cyprus's bailout, including hitting wealthy depositors with losses, was not what would happen in further bailouts.
"Cyprus is no template," he said.
The euro zone struck a deal last month to hand Cyprus a bailout worth 10 billion euros ($12.84 billion) but demanded rich depositors in its banks forfeit some money despite the risk of a wider bank run.
Initially, Cyprus also sought to charge those with 100,000 euros or less even though they had a bank deposit guarantee.
($1 = 0.7789 euros)
(Writing by Paul Carrel. Editing by Jeremy Gaunt.)