Cyprus reached a tentative agreement on an international bailout, a European official said, moving toward a deal eliminating the threat of default and the country’s disorderly exit from the euro currency.
Finance ministers from the 17-nation euro area are now meeting in Brussels to consider approving the accord, reached by Cyprus with the “troika” representing international lenders, the official said.
Pedestrians pass graffiti reading " Troika go home" sprayed on a wall in the old town in Nicosia, Cyprus, on Wednesday, March 20, 2013. Photograph: Simon Dawson/Bloomberg
“We have reached agreement which will go to Eurogroup for a decision to be taken,” Cyprus Parliament Speaker Yiannakis Omirou told reporters in Nicosia today.
Negotiations had centered on the fate of the Mediterranean island’s two largest banks, with Germany spearheading demands that Cyprus shrink its banking system.