Cyprus secured a €10bn package of rescue loans in tense negotiations early today, saving the country from a banking system collapse and bankruptcy.

MPs in Cyprus are expected to vote on a new proposal to radically restructure the island's banking sector, as it teeters on the brink of financial collapse.

As Cypriot politicians raced to find a new financial rescue plan ahead of a Monday deadline, tensions built in the streets of the capital. Residents withdrew what money they could from ATMs amid fears the banks could collapse.