On April 2, the Cypriot government and the EU-ECB-IMF troika concluded an agreement on the conditions for the €10bn loan to the stricken Mediterranean country, which was agreed on March 25.

The rate of interest on the loan, which Cyprus will pay back over a 12 year period set to begin in 10 years’ time, will be 2.5 per cent. The island will have until 2018 to clean up its public finances. Civil service wages are to be reduced by between 0.8 and 2 per cent, while corporation tax is to be raised from 10 to 12.5 per cent.

Finance Minister Michael Sarris, who negotiated the two bailout plans with Eurogroup and the IMF, resigned following the signature of the memorandum with the troika.