CYPRIOT authorities are trying to cobble together a plan they hope will convince international lenders to provide the money the country needs to avoid bankruptcy within days.
MPs are also meeting to decide the fate of the country’s second largest lender Laiki which was hardest hit from its exposure to bad Greek debt.
The bank’s restructuring is part of an alternative plan aimed at raising up to 5.8 billion euros (£4.9bn) to secure a larger rescue package of another 10bn euros (£8.5bn) from the other 16 countries that use the euro and the International Monetary Fund.
A new package is necessary after Cyprus’ parliament rejected a plan this week to grab up to 10% of bank deposits.
The country needs to have the plan in place by Monday as the European Central Bank has said it will cut off emergency support to the banks.
That could trigger their collapse and leave the Cypriot economy reeling.
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People queue at an ATM outside a closed Laiki Bank branch in Nicosia, Cyprus
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A police officer stands by a protest banner outside the Cypriot parliament before a meeting in the country's capital Nicosia
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A woman passes outside the Russian commercial bank in Cypriot capital Nicosia
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People queue at an ATM outside a closed Laiki Bank branch in Nicosia, Cyprus
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A police officer stands by a protest banner outside the Cypriot parliament before a meeting in the country's capital Nicosia
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A couple pass outside the closed Russian commercial bank in Nicosia, Cyprus
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Cyprus' Finance Minister Michalis Saris arrives to meet Russian Finance Minister Anton Siluanov in Moscow to open talks with the Kremlin over financial aid for the troubled island nation
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People queue at an ATM outside a closed Laiki Bank branch in Nicosia, Cyprus
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A protestor holds out her hand during a protest outside the parliament in Nicosia, Cyprus as the parliament meet to vote on a bailout package for the troubled Island nation
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A man passes outside a closed Russian commercial bank in Nicosia, Cyprus. A high proportion of deposits in Cypriot banks are believed to be held by Russians
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Cyprus' Finance Minister Michalis Saris arrives to meet Russian Finance Minister Anton Siluanov in Moscow to open talks with the Kremlin over financial aid for the troubled island nation
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People queue at an ATM outside a closed Laiki Bank branch in capital Nicosia, Cyprus
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People queue at an ATM outside a closed Laiki Bank branch in capital Nicosia, Cyprus
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Employees of Laiki Bank hold a banner during an anti-bailout protest outside the Cypriot parliament in Nicosia
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Protesters chant slogans outside the Cypriot parliament against a crucial parliamentary vote on a plan to seize a part of depositors' bank savings, in central Nicosia
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Cypriots use the ATM machines outside a closed Laiki Bank branch in Cypriot capital Nicosia
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Employees of Laiki bank push barriers as riot police try to stop them during an anti-bailout protest outside the Cypriot parliament in Nicosia
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A man looks inside a closed Laiki Bank branch in Nicosia, Cyprus as the country's finance officials revised a planned financial bailout to relieve small account holders from having to pay a charge on their savings
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An employee of Laiki bank reacts in front of riot police outside the Cypriot parliament during an anti- bailout rally in Nicosia
Many in the markets think that would mean the country would have to leave the euro with potentially damaging repercussions across the 17-country eurozone.
Worried Laiki employees gathered near parliament for a second day after the governor of the country’s central bank announced that authorities would look to safeguard the bank’s viable parts and isolate its toxic assets.
Apart from the bank’s restructuring, MPs were looking at a number of other bills including one setting up an “Investment Solidarity Fund” and restricting banking transactions in times of crisis.
Together, they will make up at least part of the alternative plan Cyprus hopes will secure it the bailout money.
A vote on the bills was scheduled for this morning, but that appears to have been pushed back as MPs continue discussions.
Cypriot efforts to clinch a contribution from Russia appear to have failed after Russia’s finance minister was quoted as saying talks had broken down. Russia is a key player in Cyprus as Russian depositors have parked around 20bn euros (£17bn) into the country.
