Cyprus' problem not liquidity but banks: Schaeuble

BERLIN: German Finance Minister Wolfgang Schaeuble said on Wednesday that Cyprus has no acute liquidity problems and the solution to its problems had to be sought in the excessive exposure of its banking system.

"We know that Cyprus does not have acute liquidity problems.

The government of Cyprus has said there are no problems with liquidity for the coming months," Schaeuble told reporters.

"On the other hand we know that Cypriot banks, on the whole, have a volume which is much too high in relation to gross domestic product," he said.

"We have to look for the solution in this excessive exposure of the Cypriot banking system."