Cyprus secures €10 billion bailout package

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.

Eurogroup president Jeroen Dijsselbloem and International Monetary Fund chief Christine Lagarde.
Eurogroup president Jeroen Dijsselbloem and International Monetary Fund chief Christine Lagarde. Credit: REUTERS/Eric Vidal

"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.

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UK customers escape bank levy

Around 15,000 savers in the UK arm of stricken Cypriot bank Laiki will see their deposits protected under British rules and will escape the Cyprus banking levy.