Unclear future for Cypriots after 'painful' bailout deal

Cyprus president Nicos Anastasiades speaking today. Credit: Reuters

The Government in Cyprus has defended the last-minute bailout deal it negotiated with the European Union.

It means shutting down the country's second biggest bank, with many big savers facing huge losses.

President Nicos Anastasiades told his country that the deal would be painful but was the best outcome under the circumstances, while his ministers told reporters that leaving the Euro was never an option.

Business leaders warned that having money stuck in the banks was a "vicious circle" and that a current inability to pay workers was leading to short-term lay-offs.

ITV News Europe correspondent Emma Murphy reports from Nicosia: