Cyprus, the debt-laden country’s 10-billion euro bailout package had finally been approved by the EU. The last-minute deal prevents Cyprus from a banking system collapse and bankruptcy, as well as an exit from the eurozone.
But in return, Cyprus has to shrink its banking sector, cut its budget, implement structural reforms and privatise state assets. And there are yet more casualties. Under the plan, the country’s second-biggest bank, the Popular Bank of Cyprus or Laiki, will be shut down.
Although the deal won’t enforce any levies on bank deposits under one hundred thousand euros, Cyprus Finance Minister Michael Sarris warns, for the country and its people, the road ahead will be hard. German Finance Minister Wolfgang Schaeuble says, the deal is a result Germany had long pushed for. French Finance Minister, Pierre Moscovici also put in his two cents- the last-minute resolution solves most of the headaches plaguing Cyprus.