Merkel: Germany wants solution to Cyprus problem

        
German Chancellor Angela Merkel says her country wants a solution for Cyprus but insists there must be a plan to repair the tiny Mediterranean island's bloated banking sector.   
          
Merkel told reporters in Berlin on Wednesday that she regretted but respected the decision Tuesday by Cyprus lawmakers to vote against a bailout package that would have seized up to 10 percent of people's bank savings.               

She says Germany will now wait to see what alternative proposal Cyprus offers to international creditors to stave off a collapse of its economy.             

Merkel says "of course Germany wants a solution" for Cyprus but "the current banking sector is not sustainable."

Earlier, French EU Affairs Minister Bernard Cazeneuve said that Cyprus’ crisis does not compromise the Eurozone’s stability, calling on Nicosia to resume negotiations with creditors after Parliament voiced its rejection of the EU bailout plan.        

In this regard, Cazeneuve announced that numerous measures were taken to guarantee the Eurozone stability which prevents false estimates.       

On another note, the Cypriot government and central bank are working on an alternative proposal to come up with billions of euros in funds to stave off bankruptcy, a day after after Parliament rejected an initial plan to raise money by seizing up to 10 percent of people's bank savings.      

Government spokesman Christos Stylianides says a meeting was underway at the central bank to discuss a 'Plan B' for raising funds, but also for reducing the 5.8 billion euros ($7.5 billion) that must be found domestically.     

Central Bank deputy governor Spyros Stavrinakis says no decision had been taken on when banks, which have been shut since the weekend, would reopen.


AP/LBCI