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Germany declines to rule out Cyprus debt haircut

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BERLIN (Reuters) - Germany declined on Friday to rule out a writedown of Cypriot sovereign debt, saying instead that all options should be looked at to bring the Mediterranean island's debt down to sustainable levels. Cyprus has dismissed as unfounded suggestions that the International Monetary Fund is seeking a debt writedown before it agrees to participate in a multi-billion euro bailout and European policymakers have rushed to do the same. But German Chancellor Angela Merkel's spokesman, when asked repeatedly about the possibility, declined to rule it out, saying all steps were on the ...

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