Cyprus Will Implement Bailout Terms 'Fully', Says Finance Minister

Cash-strapped Cyprus will fully implement the terms of a 10-billion-euro EU-IMF bailout, new Finance Minister Haris Georgiades said on Wednesday.

"First of all we shall implement the MoU (memorandum of understanding) fully without any derogation; we shall meet all timeframes and meet all targets," he said as he took up his new post.

Georgiades said "we do need assistance today but we shall do whatever it takes to fix our public finances and put our economy back on track for growth.

"Even though today's circumstances might be bleak, the medium- and long-term prospects remain excellent."

"We have received a blow but I'm absolutely confident we shall overcome."

Under the terms of the bailout, Cyprus will drastically reduce the size of its bloated banking sector, raise taxes, downsize the public sector workforce and privatize some state-owned firms.