Cyprus has secured a 10 billion euro ($13 billion) package of rescue loans in tense, last-ditch negotiations.

A man uses an ATM machine of the Bank Of Cyprus (Milos Bicanski/Getty Images)

The agreement between the small Mediterranean island nation and international creditors will prevent a banking system collapse and bankruptcy that could have destabilized the entire euro area.

In return for the bailout, Cyprus must drastically shrink its outsized banking sector, cut its budget, implement structural reforms and privatize state assets.

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