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Cyprus draft deal reached; Press conference next

FXstreet.com (Barcelona) - Following few hours of negotiations in Brusels among Cyprus PM Anastasiades and Fin Min Sarris with EU's Van Rompouy and Barroso, FMI Lagarde and ECB Draghi, a draft deal on the bailout has been reached, media reports. A press conference from Eurogroup is highly expected to be announced anytime soon.

According to Reuters, as reported by Annika Breidthardt and Jan Strupczewski: “Cyprus reached an outline deal with international lenders for a 10 billion euro ($13 billion) bailout that would shut down its second largest bank and inflict heavy losses on uninsured depositors,” journalists said, citing a EU spokesman.

First known outlines include creation of a “bad bank” where deposits above €100k will be transferred and will suffer a big hit still to be defined but that could extend up to 40% reduction, and deposits below €100k would be transfer to the “good bank”, which will be the Bank of Cyprus, ForexLive reports.

Soon is expected a press conference by Jeroen Dijsselbloem, Olli Rehn, Jorg Asmussen, Klaus Regling, and IMF Christine Lagarde, where more details will be released. Press conference room is currently being filled by journalists when it's 02:30 am local time in Brussels.

More to come.

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