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Deal reached over Cyprus bailout

  • Eurozone finance ministers agreed a deal on Sunday regarding a $13 billion bailout offered by the European Union and the International Monetary Fund.

    Business at Laiki Bank, the country's second-biggest, will be wound down with holders of deposits of more than $128,750 expecting to face significant losses.

    However, all deposits under that amount will be "fully guaranteed".

    Laiki is to be split into "good" and "bad" banks. Its good assets will eventually be merged with Bank of Cyprus.

    Earlier this week, parliament rejected a bank levy of 6.75 percent on small-scale savers and a levy of 9.9 percent on those with more than $128,750.

    The European Central Bank had set a deadline of Monday for a deal, stating it would cut off liquidity to Cypriot banks if a deal was not reached, with a senior EU official telling Reuters news agency that the bloc was ready for a euro exit in order to contain damage to the wider European economy.

    Know about the major cities in Cyprus, visit Cyprus Cities Map