Laurence D. Fink, chief executive officer of BlackRock Inc. (BLK:US), the world’s largest (BLK:US) asset manager, said Cyprus was not a major economic problem and Europe will come to some resolution over the Mediterranean nation that wants to impose a levy on bank deposits.
The standoff between Cyprus and euro-zone policy makers reminds us of the frailty in Europe, whose economic problems will take a “multi-year fix,” Fink said in a Bloomberg Television interview today.
Cyprus is the fifth euro-zone country to seek a bailout since 2010 to avoid a collapse of its financial system and exit from the common currency. Its parliament yesterday rejected an unprecedented levy on bank deposits, dealing a blow to European plans to force depositors to bear part of the rescue burden in a standoff that risks renewed tumult in the euro area.
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