(MENAFN) Eurogroup President, Jeroen Dijsselbloem, stated that finance ministers of the euro region have reached a political agreement with Cyprus on a financial aid program for the Mediterranean island, reported Xinhua News.
Dijsselbloem said that the restructuring program, which will include significant approach to tackling the country's financial sector's imbalances, will scale back the sector, with the domestic banking sector reaching the EU average by 2018.
Under the terms of the deal, deposits less than the EU deposit-guarantee ceiling of USD129,855 will be all protected in line with EU rules.
It is worth noting that the European Stability Mechanism (ESM) Board of Governors are forecasted to ratify the agreement by the third week of April, conditional on the completion of national procedures, while Cyprus will obtain the first tranche of a USD13 billion at the start of May.
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