Experiments with Truth: News

Cyprus nears bailout deal

Struggling into the early morning hours to avoid a collapse of Cyprus’s banking system, European Union leaders early Monday agreed on the outlines of a bailout package intended to keep Cyprus in the euro zone and rebuild its devastated economy.

The emerging deal, struck after hours of meetings in Brussels, still needs to be approved by the 17 finance ministers from countries using the euro. It would drastically prune the size of the country’s banking sector, whose size, largely built on the deposits of wealthy Russians, dwarfs the size of the tiny island nation’s economy.

The deal would scrap the highly controversial idea of a tax on bank deposits, although it would still require forced losses for depositors and bondholders.

More Follow External Link to Liz Alderman, James Kanter, Andrew Higgins, The New York Times