Cyprus economy to recover \\\'in short period\\\'

NICOSIA, Mar 31 (AFP): Eurogroup chief Jeroen Dijsselbloem said Monday he was confident that Cyprus's bailed out economy will recover in a "short period of time" despite the harsh "haircut" slapped on savings.

The Dutch finance minister was visiting the eurozone member one year after a controversial bailout deal which saw an unprecedented haircut on deposits over 100,000 euros ($138,000) to secure emergency funding to save a bankrupt economy.

"The economy of Cyprus has shown ... dynamic and flexible therefore I'm optimistic Cyprus will recover in a short period of time," said Dijsselbloem, who heads the eurozone's finance ministers.

"The Cyprus government is fulfilling all its commitments so the trust will come back," he added.

Tough austerity measures have also seen unemployment sky-rocket to record levels above 17 per cent, while recession-hit Cypriots have endured tax hikes and pay cuts.