The government of Cyprus has defended a 10bn-euro bailout deal to save its banks from collapse, amid warnings the island faces deep recession. Laiki (Popular) Bank, the country's second largest, will be wound up, but small savers will be protected. Depositors with more than 100,000 euros ($130,000; £85,000), many of whom are Russian, face big losses.
Cypriot finance minister Michael Sarris said his country had avoided a "disastrous exit from the eurozone". But correspondents say Cyprus' economy will shrink sharply as offshore banking - its main industry - is effectively shut down.
President Nicos Anastasiades - who negotiated the deal with the "troika" of the EU, the European Central Bank and the IMF in Brussels - is to address the nation in the coming hours.
It is not clear when Cypriot banks will reopen, or when temporary restrictions on the movement of capital will be lifted.