The Cypriot parliament narrowly approved a controversial 10 billion euros ($A12.76 billion) bailout deal agreed with international lenders to stave off bankruptcy for the eurozone member.
The agreement with the European Commission, European Central Bank and International Monetary Fund was backed by 29 MPs and opposed by 27, in a live television broadcast of the vote.
Among the parties that voted in favour were the ruling rightwing Disy, its coalition partner Diko, and an MP from the centrist Evroko party.
Ahead of the vote, Disy party chief Averoff Neophytou admitted the bailout was "tough" but said the island had no other choice.
"It is a tough memorandum that will mean the more sensitive groups of society needing to make painful sacrifices along with the rest of society. It is the only way because this way, we avoid bankruptcy and we are presented with a prospect to steady the ship in these turbulent waters," he said.
Those who rejected the bailout were the communist Akel party, socialist Edek, an MP from the Green party and two independents.
There were no abstentions.