Cyprus has reached a last-minute bail-out deal of 10bn ($13bn) with its international lenders that will guarantee all deposits under 100,000.
Laiki Bank, the second-largest Cypriot bank by assets, will be liquidated and deposits below 100,000 will be shifted to the Bank of Cyprus to create a "good bank".
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Deposits above 100,000 in both banks, which are not guaranteed under EU law, will be frozen and used to pay off Laiki’s debts and recapitalise Bank of Cyprus.
Deposits in all other Cyprus banks will be unaffected by the measure.
The Central Bank has also imposed withdrawal limits of 100 a day at ATMs to avoid a run on the country’s banks.
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