IIF’s Dallara warns against underestimating Cyprus crisis

Cyprus needs support from the euro area, the International Monetary Fund and Russia to stay in the euro and avoid restoking the financial crisis, said Institute of International Finance Managing Director Charles Dallara.

“One lesson we’ve learned from Greece is that just because it’s a relatively small economy, don’t underestimate potential contagion if a situation is not managed carefully,” Dallara said in an interview on Wednesday with Bloomberg Television. [Bloomberg]