Cypriots waiting to withdraw cash from a cash machine
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Cypriots pay heavy price to stay in eurozone

The government of Cyprus has defended a 10bn-euro bailout deal to save its banks from collapse, amid warnings the island faces deep recession.

The agreement protects small savers but depositors with more than 100,000 euros ($130,000; £85,000), many of whom are Russian, face big losses.

There was relief in Cyprus that small depositors have been protected, but the deal comes at a heavy price.

Mark Lowen reports from Nicosia.

  • 25 Mar 2013
  • From the section Europe