Cyprus agrees bailout deal with the eurozone IMF managing director Christine Lagarde taking part in a joint press conference early this morning. Photograph: JOHN THYS/AFP/Getty Images Cyprus has struck a last-gasp draft deal with its international lenders overnight which should mean it secures its desperately needed €10bn bailout and avoids crashing out of the eurozone. In return for the aid, the Cyprus government has committed to imposing very heavy losses on depositors with over €100,000 in the bank. Its second-largest bank, Laiki, will be shut down while the country's largest lender, Bank of Cyprus, is being heavily restructured. The agreement was hammered out after a classic marathon session of talks in Brussels from Sunday lunchtime, in which Cyprus's president Nicos Anastasiades reportedly threatened to resign rather than accept the terms demanded by the country's lenders. But a deal was finally put together out, culminating in a press conference at 1.30am GMT. There was relief in Brussels early this morning, but Cyprus still faces a troubled future, with its banks remaining closed today. Cyprus' finance minister Michalis Sarris told reporters: It's not that we won a battle, but we really have avoided a disastrous exit from the eurozone. The deal should mean that the European Central Bank lifts its threat to withdraw liquidity from the Cypriot banking sector. It also appears that the deal will not need the approval of the Cypriot parliament. But many questions remain: how will the Russians react? Will the deal be acceptable in Cyprus?... ....And just how much damage has the chaos and confusion of the last week caused to Cyprus, and the rest of the eurozone? We'll be tracking all the developments throughout the day.