Cyprus, Eurozone Bailout | featured news

Cyprus secured a package of rescue loans in tense, last-ditch negotiations early Monday, two EU diplomats said, saving the country from a banking system collapse and bankruptcy.

The European Central Bank is prepared to cut off funding to Cyprus and let the Mediterranean island succumb to financial meltdown if it has to, confident it has unlimited firepower to protect the rest of the euro zone.

European finance ministers are gathering to discuss a long-delayed bailout for Cyprus amid demands from creditor nations that the island nation commit to privatizations and greater transparency in its financial sector. France's Pierre Moscovici said ahead of the meeting of the 17-nation eurozone's finance ministers Monday the talks will specifically include the issue of anti-money-laundering policies and their implementation.

Cyprus, the fifth euro zone country to seek emergency funding from Europe, may need a bailout of up to 10 billion euros — over half the size of its economy — officials said.