LONDON: The surprise decision by euro zone leaders to part-fund a bailout of Cyprus by taxing bank deposits sent shockwaves through financial markets on Monday, with shares, the euro and the bonds of struggling euro zone governments all tumbling.
The bloc struck a deal on Saturday to hand Cyprus rescue loans worth 10 billion euros ($13 billion), but defied warnings - including from the European Central Bank - and imposed a levy that will see those with cash in the island's banks lose between 6.75 and 9.9 percent of their money.