BRUSSELS--The euro zone must complete a bailout deal for Cyprus
Sunday night in order to safeguard the stability of the euro zone,
Luxembourg Finance Minister Luc Frieden said Sunday.
"It is about much more than cyprus, it is about the stability in
the euro zone and therefore we must find a solution together," he
said. "Finding a solution here is very difficult, the situation is
very serious. But we need a solution tonight because it's about the
instability of the whole euro zone, and endangering that would be
very bad."
He said a bailout deal for Cyprus is a question not only of
helping Cyprus but "a question of helping ourselves."
Mr. Frieden said the Cypriot banking sector is clearly going to
be considerably changed in the aftermath of the bailout deal, but
he said it is important as many Cypriot banks survive as
possible.
Cypriot authorities have passed a law to allow them to step in
and resolve the Cyprus Popular Bank, and they are expected to
protect insured deposits of up to 100,000 euros ($130,000). A
decision must still be made on the future of Bank of Cyprus.
-Write to Tom Fairless and Laurence Norman at
Tom.Fairless@dowjones.com and Laurence.norman@dowjones.com