Merkel welcomes bailout deal for Cyprus

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LANGENFELD, Germany (Reuters) – German Chancellor Angela Merkel said on Monday she was “very pleased” with the outcome of marathon negotiations on a bailout for Cyprus that has averted bankruptcy for the crisis-ridden euro zone member state.

Merkel told reporters during a visit to the southern German town of Langenfeld that the deal was right for Cyprus because it ensured that those who contributed to the crisis were required to pay towards its resolution.

“I am very pleased that a solution was found last night and that we have been able to avoid an insolvency,” Merkel said. “I believe the agreement that was reached is the right one.”

Earlier, Cyprus and its international lenders clinched a last-ditch deal to shut down the island’s second-largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians, in return for a 10 billion euro bailout.

(Reporting by Jens Hack, writing by Gareth Jones- editing by Noah Barkin)

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