Cyprus reaches last-minute deal on 10 billion euro bailout

BRUSSELS/NICOSIA (Reuters) - Cyprus reached a last-ditch deal with international lenders on a 10 billion euro (8.56 billion pounds) rescue plan to avoid economic meltdown, agreeing to close down its second-largest bank and inflict heavy losses on big depositors.

The agreement came hours before a deadline to avert a collapse of the banking system in fraught negotiations between President Nicos Anastasiades and heads of the European Union, the European Central Bank and the International Monetary Fund.