“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.
But with that action, Cypriot leaders were faced with finding other ways to secure the emergency funding from the International Monetary Fund, Europe’s central bank and the island’s neighbors in 17-nation euro currency bloc.