The potential for the country exiting the Eurozone had been a real risk due to the scale of the financial crisis in Cyprus. The European Central Bank (ECB) had stated that it would cut off funds to banks in the country by this Monday, if a deal had not yet been agreed on.

The potential impact of an exit by Cyprus from the Eurozone on other European countries facing economic hardships had caused investor panic and instability from a loss in market confidence.

The bailout has led to the reconstruction or closure of parts of the banking infrastructure in Cyprus, as the county seeks to move to a sustainable solution with capital security.

Jeroen Dijsselbloem, the president of the Eurogroup of eurozone finance ministers, said the loan would "put an end to the uncertainty" surrounding Cyprus’s economic stability and the support of Europe.

With the announcement of the deal investor confidence has been bolstered, with Asian markets showing growth as investors respond to the agreement.

Negotiations enter final stages as Cyprus’ fate is decided