Shiarly: haircut was never on the table

Shiarly: haircut was never on the table

 

Neither the banks nor the government were aware of the extent to which the Greek haircut would damage Cyprus and “could not and did not take any measures” through negotiations to limit the consequences, former Finance Minister Vassos Shiarly said yesterday.

Shiarly was testifying before the committee of inquiry that is probing the circumstances leading up the ‘bail-in’ of Cyprus’ two largest banks where he also spoke of the previous administration’s track record of deficit spending; saying that while expenditure grew by approximately €1bn a year, revenues were consistently dropping.