“Cypriot leaders scrambled Thursday to raise $7.5 billion to avoid a debt default for the island nation, but the European Central Bank warned it would cut off emergency funding Monday if the country cannot resolve its financial crisis.
In Moscow, Cypriot finance officials continued negotiations with Russian leaders over possible new funding. Meanwhile, in Nicosia, the Cypriot capital, officials discussed restructuring the country’s debt-ridden banks and raising money from domestic sources, such as pension funds and the subsidiaries of foreign banks operating on the island.
Several lawmakers said they have abandoned the idea of taxing bank deposits, the controversial measure that was part of the $13 billion Cyprus rescue plan agreed to by the country’s international lenders. After depositors angrily protested the proposed tax, the Cypriot parliament overwhelmingly rejected it this week.