Cyprus 'makes significant progress' in crunch bailout discussions

Thousands of bank employees protest outside the parliament in Nicosia today.
Thousands of bank employees protest outside the parliament in Nicosia today. Photo: REUTERS/Yannis Behrakis

Cyprus has made "significant progress" in talks with the EU and IMF to secure a last-ditch deal to prevent the country's financial collapse.

The nation today agreed a 20 per cent tax on deposits over €100,000 at the Bank of Cyprus and four per cent on deposits over €100,000 at other banks.

The island's finance minister, Michael Sarris, reported "significant progress" in talks with international lenders as Cyprus looks to find a rescue package for its stricken banks before Monday's deadline.

Eurozone finance ministers will meet on Sunday evening to discuss a deal to safeguard Cyprus's Eurozone future.

ITV News' Europe Correspondent Emma Murphy:

The European Union's Economic Affairs Commissioner Olli Rehn said progress was being made towards a solution.

Cypriot President Nicos Anastasiades tweeted: "We are undertaking great efforts. I hope we have a solution soon."

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