Parliament in Cyprus has approved the country's international bailout after warnings that the alternative would be financial collapse, BBC News reported.

MPs voted through the loan package by 29 votes to 27.

The tiny eurozone state secured a loan package worth 10bn euros (£8.4; $13bn) from its EU partners and the International Monetary Fund.

In return it must raise 13bn euros, largely banking reform.

An early proposal to raise money through a levy on all bank deposits was quickly withdrawn.

But anger has continued smouldering. Under the bailout, depositors will be forced to take major losses on savings over 100,000 euros, and capital controls were imposed in March.

The Cypriot financial crisis developed because of its exposure to Greece's economic problems.