A collapse of Cyprus' banking system appears to have been averted thanks to a last-minute rescue deal struck on March 25 by the country and its international lenders — the European Union, the European Central Bank and the International Monetary Fund.
But the seeds of the crisis have not been completely eradicated. The parties concerned will need to make further efforts to ensure that a crisis does not happen again.
Under the deal, €10 billion ($13 billion) will be secured from the three lenders. The initial bailout agreement had required that Cyprus raise €5.8 billion on its own to contribute to the bailout. To raise that amount, the government first announced that it would impose a one-time tax on bank depositors. Accounts under €100,000 would be charged 6.75 percent; those greater than €100,000 would be taxed at 9.9 percent.