Juncker rules out haircut on Cypriot debt

Outgoing Eurogroup chief Jean-Claude Juncker on Friday dismissed the possibility of writing down Cypriot sovereign debt, saying that would risk the credibility of the euro zone.

"We didn't say all Greek speaking countries, we said Greece. It is part of the credibility to stick to the signals you have sent," Juncker told German radio Deutschlandfunk.

"I expect that a haircut will not be part of the instruments that will be used with priority (in Cyprus). I want to exclude that possibility from my side," Juncker added.

Cyprus on Thursday dismissed as unfounded any suggestion that the International Monetary Fund is seeking a writedown of the island's debt before it agrees to participate in a multi-billion euro bailout.

(Reporting by Annika Breidthardt)