Cyprus bailout: Deal reached in Eurogroup talks

This article talks about an agreement being made by the euro zone finance ministers on a 10 bn euro bailout for Cyprus. This would prevent the collapse of the Cyprus banking system and also keep the country in the euro zone.

This deal is a good news for all depositors who have under 100,000 euros as all their deposits would be untouched while the deposits more than 100,000 will face big losses. The percentage to be levied on these large accounts are still unknown and would be solved in the coming weeks. This decision is going to hurt the Russians as they have large scale financial investments in the country and could damage their financial sector as well.

Laiki Bank which is the country's second largest bank would be split into good and bad banks and the good assets would be merged with the bank of Cyprus. The banks are still closed and the talks of when the banks would be open would be discussed on Monday by the Cypriot government and troika. The banks have lowered their daily limits on withdrawals from ATM machines to 120 euros by the Bank of Cyprus and 100 euros by Laiki.

http://www.bbc.co.uk/news/world-europe-21916102