The Cyprus bailout shows banks can be wound down despite difficulties, European Central Bank (ECB) policymaker Jens Weidmann said in an interview broadcast on Sunday, adding the situation on the island had stabilized.
Weidmann, chief of Germany's Bundesbank, told Deutschlandfunk radio he wouldn't rule out that Cyprus might need yet more liquidity, but stressed it was longer term structural reforms that would solve Nicosia's problems and not more cash.
To secure a 10 billion euro EU/IMF bailout last month, Cyprus forced heavy losses on wealthier depositors. Initially it had also pledged to introduce a levy on deposits of less than 100,000 euros before reneging in the face of protests.
The agreement also includes the winding down of the island's second-largest bank Cyprus Popular Bank.
Cyprus' bailout was not a template, Weidmann said, due to the large size of its financial sector, although it was crucial that those who bore responsibility for getting banks into trouble bore some liability.