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Eurozone Finance Ministers reach bailout deal on Cyprus

The finance ministers of the 17-nation eurozone agreed in the early hours of Monday on a 10 billion euros bailout deal for Cyprus to prevent the country’s banking system from collapsing and bankruptcy.

The president of the Eurogroup of eurozone finance ministers, Jeroen Dijsselbloem, told a press conference in Brussels, that the plan to recapitalize Cypriot ailing lenders and keep the government afloat was supported unanimously by all finance ministers and the so-called troika of creditors: the International Monetary Fund, the European Commission and the ECB.

Under the plan, the country’s second largest bank, Laiki Bank, will be restructured by splitting it into “good” and “bad” banks. The bank’s good assets will be merged into Bank of Cyprus and toxic assets will be later liquidated.

Dijsselbloem said that the restructuring of the Laiki Bank would contribute a financial aid of 4.2 billion euros for Cyprus, RIA Novosti reports.

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