"Cyprus and the Cypriots have gone through very difficult times before, and you know what I mean, and the Cypriots have overcome these difficult times," Rehn said Monday immediately after the country's bailout deal was secured.
Given that it's opted to keep the euro, Cyprus doesn't have the option of boosting growth from a lower currency.
So where could growth come from? Much has been made of the country's potential offshore gas reserves but there are doubts as to how that will be brought to market given the interests of other players in the region, including Turkey.
Whatever the form a future Cypriot economy takes, the financial services industry will need to regain trust."The fundamentals are still there," said the LSE's Ker-Lindsay. "Cyprus is still a great place to set up business in that region. However, without trust in the banking sector, it's going to be difficult to keep companies there, let alone attract new ones." ____ Menelaos Hadjicostis in Nicosia, Cyprus, contributed to this story.