The bailout size is 17 billion euro (US$22.2 billion) which almost equals Cyprus GDP. This would increase debt to more than 140% of GDP, a level considered unmanageable in the long run.

To seal a bailout agreement Nicosia might need to sell state assets, agree a sum on bank recapitalization and refute claims that Cyprus has become a haven for money laundering. The key issue to discuss today is the reduction on the value of deposits in local banks – the step demanded by some creditors.

Eurozone finance ministers said at their last meeting that the long-delayed bailout deal could be struck by the end of March. In June Cyprus will have to repay 1.4 billion euro in expiring bonds.