Cyprus has secured a €10 billion (£8.66 billion) bailout package agreed by its eurozone partners and the International Monetary Fund (IMF).
In return, cash-strapped Cyprus will trim its deficit, shrink its troubled banking sector, raise taxes and privatise state assets, Eurogroup president Jeroen Dijsselbloem said following around 10 hours of talks.
"The Eurogroup was able to reach a political agreement with the Cypriot authorities on the cornerstones of this agreement", Dijsselbloem said.
"The assistance is warranted to safeguard financial stability in Cyprus and the eurozone as a whole", he added.
Cyprus' rescue deal has sent shivers through southern Europe after a key eurozone figure said it would be a model for future bailouts.
The future is uncertain for the people who must live with the consequences of Cyprus' "painful" bailout deal.
The Dutch Finance Minister has said the bank levy 'bail-in' on large depositors "pushes back the risks" from the rest of the eurozone.