Cyprus approves loan agreement

Published May 1, 2013 at 05:00AM

Cyprus’s international rescue loan deal was approved by a slim majority in the nation’s parliament Tuesday, with 29 lawmakers voting in favor and 27 against.

Cypriot President Nicos Anastasiades agreed on March 25 to a $13.2 billion loan from the euro area and the International Monetary Fund in return for measures including a tax on bank deposits of more than 100,000 euros at the country’s two biggest banks, wage and pension cuts and the sale of assets and gold. Those concessions were demanded by creditors in a bid to shrink what European and IMF officials called an oversized and unsustainable banking sector.

Lawmakers earlier Tuesday approved a property tax increase and further public-sector pay cuts as required by the troika of the IMF, European Central Bank and European Commission.

— From wire reports