Cypriot parliament approves bailout

Cyprus' parliament has approved an EU bailout plan with provisions to impose heavy losses on uninsured bank depositors and to close down the island's second biggest bank ahead of a proposed merger with the Bank of Cyprus.

By a show of hands, 29 lawmakers approved ratification of the bailout bill against 27 opposed.

The government had warned that without approval the economy was in imminent danger of default. Cyprus is expected to get the first tranche of a total of 10 billion euros ($13.10 billion) in aid in May, with the finances coming from the European Union and the International Monetary Fund.

The conditions of the bailout could see Cyprus falling into at least two years of economic misery, according to some analysts, with fears that the eurozones third smallest economy will be dragged down by skyrocketing unemployment rates. The measures have fueled massive calls from Cypriots to exit the euro block.