Germany would have protected insured deposits: Schaeuble | Reuters

"But those who did not want a bail-in were the Cypriot government, also the European Commission and the ECB, they decided on this solution and they now must explain this to the Cypriot people."

Government denies that Cyprus President dismissed exclusion of deposits under 100,000 euros

Cyprus’ lenders, according to Stylianides, asked during the last Eurogroup meeting the closure of two major Cypriot banks, the transfer of deposits up to 100,000 euros to a “good bank” and the clearance of the rest of the deposits.

The Government Spokesman also added that the IMF estimated that these deposits would lose 40% of their deposits, while remaining frozen for 5-10 years. He went on by saying that the European Commission said the total loss would be much bigger, with catastrophic results for the whole economy.

Draghi said depositors with guarantees should be sacrosanct, but that it was best not to touch any depositors if possible.

"You have a pecking order, ideally insured depositors should be the very last category to be touched. The (European) Commission draft directive (on banking) foresees exactly this.

"There isn't actually a specific distinction between categories of bondholders and uninsured depositors in the draft directive. But basically the point is that you, if you can, don't touch uninsured depositors," Draghi said.