Cyprus faces a long, difficult path to rebuild its economy but a European bailout deal struck in the early morning hours of Monday offers the country the best chance of getting back on its feet, German Finance Minister Wolfgang Schaeuble said.

At a news conference in Berlin on Monday, Schaeuble said the agreement was "much better" from Germany's perspective than a deal struck last week which would have hit small depositors and was rejected by the Cypriot parliament.

"(Cypriot President) Anastasiades came to understand that it was not just Germany and the IMF that wanted a bail-in, but also the others," Schaeuble said.

(Reporting by Noah Barkin)