Cypriot President Nicos Anastasiades has said he had to choose between imposing a levy on peoples' bank deposits in the country or seeing the "disorderly bankruptcy" of the state.
Addressing the public today, he added that the country's financial problems may have led to their possible exit from the Euro Zone.
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.