Business, Finance & Economics

Cyprus parliament approves EU bailout deal


People walk past closed shops in the old town of Nicosia, Cyprus, on Jan. 26, 2013. The bailout of Cyprus is garnering much less attention than did the help provided to other struggling euro zone members.


Patrick Baz

Cypriot lawmakers on Tuesday narrowly passed a critical bailout deal arranged by the European Union in a bid to offset the bloc's growing debt problem. 

The deal passed with 29 votes in favor and 27 against, said Reuters. No one party has a majority in the Cypriot parliament.

The multibillion-dollar deal is supposed to stop Cyprus from going totally bankrupt, an event that would further endanger the euro.

European officials worked with the International Monetary Fund to draft the $30 billion arrangement, a deal that includes a loan of $13 billion

The deal's acceptance in Cyprus is expected to lift listless European markets, even as unemployment in the region hits a record high.

International lenders were watching the vote in Cyprus closely after parliament rejected an EU-brokered plan last month, prompting banks to shut down for weeks amid increasing financial turmoil. 

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