Cyprus FinMin says 10 bln euros of aid would be for banks

Vassos Shiarly, the finance minister of Cyprus, said on Thursday of the possible 17 billion euro aid program, 10 billion euros would be used to recapitalize banks and 6.5 billion to refinance existing debt.

“The 17 billion includes 10 billion for the recapitalization of banks, about 6 to 6.5 billion euros is refinancing existing debt. Therefore, when we talk about another 100 percent of GDP in debt, it is not 100 percent,” he told a Dutch parliamentary hearing in The Hague.

Shiarly appeared in parliament to address questions about a bailout for the island. [Reuters]