EU approves Cyprus bailout plan

Cyprus clinched a last-ditch deal with international lenders on Monday for a 10 billion euro ($13 billion) bailout that will shut down its second largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians.

The agreement emerged after fraught negotiations between President Nicos Anastasiades and heads of the European Union, the European Central Bank and the International Monetary Fund - hours before a deadline to avert a collapse of the banking system.

The plan, swiftly endorsed by euro zone finance ministers, will spare the east Mediterranean island a financial meltdown by winding down Popular Bank of Cyprus, also known as Laiki, and shifting deposits below 100,000 euros to the Bank of Cyprus to create a "good bank".

(SOUNDBITE) (English) EUROGROUP CHAIRMAN JEROEN DIJSSELBLOEM, SAYING:

"Laiki bank will be resolved immediately with full contribution of equity shareholders, bondholders and uninsured depositors, and it will be split i