Cyprus banks to remain closed amid crisis

Cypriot officials have said the country's banks, which were closed to prevent mass withdrawals, will remain shut until at least Tuesday.

On Wednesday afternoon the cabinet began an emergency meeting to discuss alternatives to an EU-IMF bailout deal rejected by parliament on Tuesday.

Germany says banks in Cyprus may never reopen if a bailout is not agreed.

Meanwhile, Cyprus' finance minister is in Moscow to seek help from Russia, which has large investments in Cyprus.

Finance Minister 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."

Talks are expected to continue in Moscow on Thursday.

Reports say the government is considering imposing capital controls to prevent funds leaving Cyprus when banks are reopened.

Monday 25 March is a scheduled bank holiday, and Thursday and Friday have also been declared bank holidays. The stock exchange also remains closed.

Earlier, Cypriot President Nicos Anastasiades met party leaders and the central bank governor in Nicosia to hammer out a Plan B after a one-off tax on savings failed to get the support of any MPs.

Anastasiades has also been talking to the European Union, European Central Bank and International Monetary Fund (IMF).

Bank mergers, a bond issue, and more Russian funding have all been mentioned as ways to help the country out of the crisis.

Banks are still giving out cash through machines - although with limits, and some are running low.

However, some businesses are now refusing credit card payments, our correspondent reports.

On Wednesday, German Chancellor Angela Merkel said she regretted but respected the Cypriot vote.

She said the eurozone had a duty to find a solution for Cyprus, but added that the country's current banking system was "not sustainable".

A European Commission spokesman told AFP it was now up to Cyprus to "offer an alternative scenario... which guarantees debt sustainability".

The controversial levy had been proposed as the condition for the €10 billion EU and IMF bailout. Cyprus was expected to raise €5.8 billion through the one-off tax on bank savings.

The plan was altered on Tuesday to exempt savers with less than €20,000 but a 6.75% charge on deposits of €20,000-€100,000 and a 9.9% charge for those above €100,000 remained.

However, parliament rejected the deal, with 36 MPs voting against it, 19 abstaining and none in favour.

Protesters outside parliament reacted with joy at the decision.

Anastasiades said he "fully respected" the vote.

He said he had spoken to Russian President Vladimir Putin, as Cyprus sought alternative financing.

Sarris met Siluanov to discuss the easing of the terms on a €2.5 billion loan Moscow gave Cyprus in 2011 - and the possibility of further funding - but no deal was reached on Wednesday.

"We had a very honest discussion, we've underscored how difficult the situation is," Sarris said.

He later met First Deputy Prime Minister Igor Shuvalov but sources said that, again, no agreement had been reached.

Cyprus has attracted money through its lower taxes, with Russians holding between a third and half of all Cypriot deposits.

Russian private and corporate deposits are believed to total about $30bn.

Putin had called the bailout deal "unfair, unprofessional and dangerous".

Analysts say Russia may provide more funding in return for interests in Cyprus' offshore energy fields.

One offer of help has come from Cyprus's Orthodox Church, which is a major shareholder in the third-largest domestic lender, the Hellenic Bank.

Archbishop Chrysostomos I said on Wednesday the Church was willing to mortgage its assets to invest in government bonds.

Cyprus' banks were left exposed following the debt crisis in Greece and there are fears Cyprus could go bankrupt if they fail.

German Finance Minister Wolfgang Schaeuble warned Cyprus that its banks might never be able to reopen if it rejected the bailout.