(MENAFN- AFP) The Cypriot parliament narrowly approved on Tuesday a controversial EU-IMF bailout deal after the government warned that a rejection would be "catastrophic" for the eastern Mediterranean island's teetering economy.The agreement with the "troika" of the European Commission, European Central Bank and International Monetary Fund was endorsed by a vote of 29-27, with no abstentions.It means that the virtually bankrupt government can hope to receive a first tranche of the 10-billion-euro ($13.1 billion) loan in May.Ahead of the vote, ruling Disy party chief Averoff Neophytou said the bailout was "tough" but the island had no other choice."It is a tough memorandum that will mean the more sensitive groups of society needing to make painful sacrifices along with the rest of society. It is the only way because this way, we avoid bankruptcy," he said.As MPs debated, some 400 people demonstrated to protest the package, which has forced Cyprus to radically downsize its bloated banking sector, raise taxes and cut public spending.Disy's MPs voted in favour, along with coalition partner Diko, and an MP from the centrist Evroko party.Voting 'no' were the communist Akel party, socialist Edek, an MP from the Green party and two independents.Before the vote, government spokesman Christos Stylianides said "every MP needs to be aware that today marks a historic landmark for our homeland.""A 'no' from the house today would have catastrophic consequences," he said.And Finance Minister Haris Georgiades had said approving the package was a tough but necessary step that had to be ratified without delay.He warned that, otherwise, Cyprus would be driven to economic collapse and could even be forced to exit the eurozone.As debate got underway, House speaker and Edek chief Yiannakis Omirou said the package was a "barbaric and colonial force,"He added that he agreed with former Eurogroup chairman Jean-Claude Juncker, who said "we treated all Cypriots like bandits and gangsters".George Perdiki, the sole MP for the Green Party, painted a gloomy picture."The Cypriot people will go hungry. They will endure harsh times, never experienced before in its recent history. That is a fact," he said."The younger generation will emigrate, problems in society will increase and gloom and misery will prevail. The people will be left mendicant and in financial ruin. But, most saddening of all, the people will be left morally ruined."The eurozone has forecast that gross domestic product will plunge by 8.7 percent in 2013 and another 3.9 percent next year, with already high unemployment surging.The total cost of the deal to Cyprus has surged from an original 17.5 billion euros to 23 billion, including the 10-billion-euro loan from the troika.It has triggered widespread discontent on the island, as numerous business failures and job losses are feared.On Monday, President Nicos Anastasiades said he was planning sweeping reforms in a bid to modernise the battered island, including lifting immunity from prosecution for himself and other politicians.Cyprus has come under pressure from the public and the EU to eradicate perceived political corruption.
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