ECB wants to avoid Cypriot lender bankruptcy

The European Central Bank is eager not only to avoid Cyprus’s bankruptcy but also that of the country’s credit system, and is prepared to listen to Nicosia’s proposals as the Cypriot President is due to arrive in Belgium for talks on Sunday.

“We cannot fund banks that are bankrupt,” ECB council member Erkki Liikanen told Finland’s YLE TV1 on Saturday.

“There is now a chance of drawing up a program in which the banks are recapitalized or reorganized to reach solvency. The ball is in Cyprus’s court.”

In Brussels, President Nicos Anastasiades will meet with International Monetary Fund chief Christine Lagarde and other European officials before the crucial Eurogroup meeting in the evening.