Cyprus bailout has Aussie savers worried

The consequences of Cyprus's economic crisis are being felt around the world, and Australia is no exception.

There are about one hundred thousand Cypriots in Australia many of whom have savings and business interests on the island, with millions of Euros collectively in their accounts.

Many of them are up in arms at the terms of the recent bailout for the debt-hit island, specifically the fact that between 6.75 and 9.9 per cent of the total of all personal savings accounts is being sought as part of the deal.

Spiros Constantinou is a Cypriot-Australian businessman who is likely to be hit.

'It's unheard of', he told SBS.

'It's ethically bankrupt. And business-wise it will not really serve the purpose of saving the economy of Cyprus.'

Others worried about the consequences for the island, such as Melbourne's Cypriot Community President, Jim Wood.

'Things like this can lead to political instability as well', he said.

Katrina Yu has more.