Greece has reached an agreement to purchase local units of Cypriot banks as it hopes to lift Greek banks from the crisis, allowing Cyprus to drop its bloating banking industry.
Alpha Bank and Piraeus are two of the three Greek banks that are set to take over the units of three Cypriot lenders, Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank, in Greece.
News about the agreement between Greece and Cyprus allowed European shared to trim losses. The deal is part of the terms of a euro zone bailout agreement what was rejected by the Cyprus parliament due to unpopular levy on banking.
The deal marks the efforts of Greece to make local depositors confident that their bank savings were safe.
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