Cyprus agrees to accept bailout

April 30, 2013 at 2:29 PM
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NICOSIA, Cyprus, April 30 (UPI) -- Lawmakers in Cyprus agreed by a narrow margin to accept a $13 billion international bailout loan.

The vote, which came to 29 for and 27 against, will allow for international aid for Cyprus provided by the eurozone community and the International Monetary Fund.

The first installment of the loan will arrive in May.

The terms of the deal include tough austerity budgeting measures that add up to $17 billion, which will come from a combination of government spending cuts and tax increases, The Wall Street Journal reported Tuesday.

Uninsured bank depositors are also slated to take losses, as the deal includes unwinding the country's second largest bank, Cyprus Popular Bank PCL and restructuring at the country's largest bank, the Bank of Cyprus.

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