Cyprus’s finance minister resigns following bailout deal

Cyprus’s finance minister resigned yesterday after concluding a €10bn bailout deal with international lenders in which the country slashed its dominant banking sector and hit depositors with losses.

Michael Sarris, a lead player in talks with IMF and EU lenders, said he had completed his task but also that he was likely to come under scrutiny in an investigation into the crisis.

Yesterday’s deal, which still needs to be ratified by national EU parliaments and eurozone finance ministers, will see Cyprus receiving a €10bn loan, carrying an interest rate of about 2.5%.