NICOSIA: Cyprus’ new finance minister Friday ruled out a haircut, or imposed losses, on bank deposits to ease a financial bailout from international lenders, now stalled amid worries about debt sustainability.

“Really and categorically – and this doesn’t only apply in the case of Cyprus but for the world over and the eurozone – there really couldn’t be a more stupid idea,” Michael Sarris, who took over his post Friday, told reporters.

Sarris, a widely respected economist, was the first appointment of new Cypriot President Nicos Anastasiades, who won a presidential election on Feb. 24 on a platform of constructively attempting to seek a deal with lenders.

Cyprus’ bailout request, on hold for the past eight months, will be discussed at a meeting of eurozone finance ministers in Brussels Monday.

Scenarios have been floated in recent weeks over how Cyprus, one of the eurozone’s smallest economies, could ever afford to repay a bailout bill which could reach 17 billion euros, almost the same size as its economy.

One of the reported options under discussion is for those holding deposits in excess of 100,000 euros in Cypriot banks to take a loss if their bank is wound down, in order to scale down the oversized Cypriot financial sector.

Cyprus, which has built its economic model as a business center with one Europe’s lowest tax rates, has been adamant that idea will never fly.

He said the speculation was linked to attempts to make debt sustainable, but said there were other ways to handle the bailout bill.

Asked whether he was in favor of privatizations, he said: “I think a lot of state enterprises are problematic. Changes are needed, but I think time is needed for it to be done properly. A strategic investor could help.”