ECB executive warns on Cyprus aid delays "There must be no doubt about this: if Cyprus gets no external help, it will slide into default," said Mr Asmussen, speaking to German newspaper Handelsblatt. Mr Asmussen's comments come ahead of a crucial meeting of finance ministers from the 17-nation single currency bloc, where members are set to discuss a radical new option for restructuring Cypriot debt. The unconventional proposal - seen by the Financial Times - would force losses on to uninsured bank depositors and investors in Cypriot government bonds while cutting sovereign debt by two-thirds. While such a plan might placate German politicians keen to see foreign investors in Cyprus shoulder the burden, it is unlikely to go ahead according to the newspaper, citing senior EU officials. Cyprus applied for a financial rescue in June last year after its banks suffered huge losses on the EU-approved write-down on neighbouring Greece's debt, but has so far failed to secure a package. Olli Rehn, EU Commissioner for economic and monetary affairs, warned in January that a Greek-style "debt haircut" was not an option for the Cypriot economy after it was plunged further into crisis after a three-notch downgrade by ratings agency Moody's. But Mr Asmussen is not alone in urging a bailout for the island nation. ECB President Mario Draghi has also warned that a failure of Cypriot banks would post a systemic risk to the eurozone.