Report: Cyprus secures bailout from eurozone and IMF

Eurozone countries and the International Monetary Fund (IMF) have struck a deal to give Cyprus a bailout worth €10 billion (£8.66 billion), Reuters reported, citing a senior eurozone official.

Following 10 hours of discussions through the night, eurozone finance ministers and IMF chief Christine Lagarde agreed to the smaller-than-expected package, the report stated.

The bailout is needed to recapitalise Cyprus' banks, which were hit hard by a sovereign debt restructuring in Greece last year.

Under the emergency lending programme, Cyprus agreed to increase its nominal corporate tax rate by 2.5 percentage points to 12.5 percent, the senior source involved in the negotiations told the news agency.

The deal would make Cyprus the fifth country to ask for a bailout from the international lenders, following Greece, Ireland, Portugal and Spain.

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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.