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.

Cyprus is being pressed to restructure or shut down two of its three banks and to take a 10% slice off the deposits of more than €100,000 from the up to €60bn in its banks, as well as from bondholders.

Cyprus is racing to meet an end of June deadline to pump €1.8 billion into Cyprus Popular Bank — which is heavily exposed to Greek bonds — but will struggle to attract investors, as long as the outcome of the Greek election is unclear.