Cyprus' government has accepted a $3.3 billion loan from Russia, avoiding the possible need for an international bailout.

Cypriot officials say the loan, together with economic reforms and measures to control spending, will have significant benefits for the island.

Cyprus expects to start receiving the money from Russia in January.

Russia is a major customer of Cypriot banks, which are heavily invested in Greek bonds and, like the rest of the eurozone, would be devastated by a Greek default.

Cyprus also is struggling with a large budget deficit.