Cyprus has been accused ignoring early warnings over its beleaguered finances.
The charge was made by Ollie Rehn at an extraordinary meeting of the European Committee on Economic and Monetary Affairs.
The EU’s Economic and Monetary Affairs Commissioner says the island was warned about its “excessive financial imbalances” and told that a bailout package was “unavoidable”.
According to Rehn, Cyprus took more than half a year to accept the gravity of its situation.
Cyprus was the fourth euro zone economy to request an international bailout in March but unlike other aid recipients, the country was forced to impose a levy on banking deposits over 100,000 euros.
The deal was criticized as being a covert method of tackling perceived money-laundering practices by foreign depositors enjoying Cyprus’ lax financial regulation and low tax rates.