(MENAFN- Kuwait News Agency (KUNA)) Finance ministers of the 17-member Eurozone today, Saturday, reached a political agreement on an 10 billion euro bailout for Cyprus to save the country from bankruptcy.
Speaking at a press conference early Saturday after a special meeting of the finance eministers, Jeroen Dijsselbloem, President of the Eurogroup said " I am pleased to announce that the Eurogroup considers that great progress has been made and was able to reach a political agreement with the Cypriot authorities on the cornerstone of an adjustment program. All Member States support this agreement." The Eurogroup, he said, considers that in principle financial assistance to Cyprus is warranted to safeguard financial stability in the country and the euro area as a whole by providing a financial envelope of 10 billion euro.
Cyprus initially requested for a 17 billion euro in financial assistance.
On his part, EU Commissioner for Economic and Monetary Affairs, Olli Rehn, said that Cyprus is of systemic relevance to the Euro area. "Not to provide assistance to Cyprus would have posted the risk of undoing the progress that has been made over the past year," he told the joint press conference.
Cyprus is the fifth Eurzone member to get an EU bailout after Greece, Ireland, Portugal, and Spain. Â
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