1. Bailout

    EU Approves $10B Cyprus Rescue

    NICOSIA, CYPRUS - MARCH 24:  cypriots protests against EU at protest outside a Eurogroup meeting at the European Council building on March 24, 2013 in Nicosia, Cyprus. Talks between the the International Monetary Fund (IMF) and European Union (EU) continue as the country seeks to agree terms to a bailout for its ailing banking sector. Failure to do so is seen as exposing the country to having to leave the eurozone.  (Photo by Milos Bicanski/Getty Images)

    Milos Bicanski / Getty Images

    Hours before the deadline to save Cyprus’s banks, the country reached a bailout agreement with the European Union. The plan protects deposits under €100,000 but freezes accounts over that threshold—many of which belong to wealthy Russians using the island nation as a tax haven—and uses them to pay off the country’s debts. Smaller deposits will be shifted to the Bank of Cyprus, while the Popular Bank of Cyprus will be shut down. It’s not clear how harsh the tax on large accounts will be, but it’s supposed to raise €4.2 billion.

    Read it at Reuters