Demetriades: ECB leaks on Cyprus Popular Bank may harm euro

The leaking of documents on the rescue of Cyprus’s second-biggest bank distorts the truth about the country’s bailout and may damage confidence in the euro, former European Central Bank Governing Council member Panicos Demetriades (photo) said.

The ex-governor of the Cypriot central bank spoke after the New York Times published stories citing confidential ECB minutes and correspondence showing how officials arranged emergency funding for Cyprus Popular Bank Pcl.

Demetriades said the liquidity was a necessary and unavoidable bridge to its rescue.