European leaders have reached a deal on a new bailout for Cyprus, as the European Central Bank (ECB) deadline on suspension of funds to the country’s banks threatened to plunge the island into bankruptcy.

The Cypriot government and its international creditors, the troika of the EU, ECB and International Monetary Fund (IMF) agreed to a deal in the early hours of Monday morning (25 March) that will see depositors with less than €100, 000 exempt from having to pay a levy on their ...