Cyprus holds crisis talks after bailout rejection

Cypriot President Nicos Anastasiades is meeting party leaders to hammer out a Plan B after a one-off tax on savings failed to get the support of any MPs.

Germany says banks in Cyprus may never reopen if a bailout is not agreed, reports The BBC.

Cyprus’s finance minister is in Moscow to seek help from Russia, which holds multi-billion dollar investments.

Michalis Sarris said after talks with Russian Finance Minister Anton Siluanov: “There were no offers, nothing concrete,” but he added, “we’re happy with a good beginning.”

President Anastasiades is holding the emergency meeting of party leaders and the central bank governor in Nicosia to “examine alternative plans to address the situation that may arise following… the parliamentary vote”, his office said.

Mr Anastasiades, who was elected to the presidency on 24 February, will also hold a cabinet meeting and talks with the European Union, European Central Bank and International Monetary Fund (IMF).

Bank restructuring, a bond issue and more Russian funding are possible options.

Banks in Cyprus have been shut until Thursday to prevent mass withdrawals. The stock exchange remains closed.