Germany,IMF used atomic bomb to shoot pigeon,says Cyprus negotiator

Patsalides took part in the recent bailout negotiations between Cyprus and the European Union and International Monetary Fund.

He was speaking to a judicial inquiry which started an investigation on Friday into the circumstances that led to the economic meltdown of one of the euro zone8217;s smallest economies.

Patsalides told the inquiry that an 8220;unrelenting8221; team of technocrats had dispensed savage fiscal punishment to cash-starved Cyprus

8220;With the imposition of Germany and the IMF 8230; they shot a pigeon with an atomic bomb,8221; he said.

Many Cypriots saw their life savings vanish in March when authorities imposed losses on uninsured deposits in two of Cyprus8217;s banks 8211; Popular and Bank of Cyprus 8211; which were badly stung by an EU-sanctioned writedown on Greek sovereign bonds.

The depositor losses 8211; which also hit overseas depositors,many from Russia 8211; were part of Cyprus8217;s contribution ensure it received a 10 billion euro bailout from the EU and IMF.

Asked whether forcing losses on depositors was compatible with their individual rights,Patsalides replied: 8220;When you are dealing with forces of occupation,they don8217;t talk about human rights.8221;

Cyprus,which had modelled itself as an offshore financial services centre for lack of any other resources,now faces a grim future with its reputation in tatters and its economy deep in recession.

8220;They destroyed an economic system that worked,8221; Patsalides said. 8220;Yes,we have our shortcomings,but the magnitude of the punishment is far greater than the size of the problem.8221;