Cyprus says suggestions of a haircut on its debt are unfounded

NICOSIA (Reuters) - Cyprus dismissed as unfounded on Thursday any suggestion the IMF is seeking a writedown of the island's debt before it agrees to participate in a multi-billion euro bailout. Finance Minister Vassos Shiarly was responding to a German media report that the International Monetary Fund had advocated a haircut on Cypriot bonds as a condition for IMF participation in an aid programme for the euro zone member, which is heavily exposed to debt-crippled Greece. "It is an unfounded allegation on which I do not wish to comment," Shiarly said. "There is no issue of a haircut. ...

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