Banks in Cyprus will remain closed on Thursday and
Friday while the country scrambles to find a way to secure bailout funds after
rejecting a levy on all savings.
With Monday a public holiday, the move effectively
closes lenders until Tuesday, March 26.
The finance ministry said the decision had been
taken "on grounds of public interest in order to ensure financial
stability".
Banks have already been closed since last Saturday
as Cyprus seeks to prevent the uncertainty prompting a run on them.
Cyprus' cabinet went into emergency session on
Wednesday after voting against the tax on all savings, which was originally
agreed with international lenders to secure a 10bn euro (£8.6bn) bailout
package.
The acting leader of the ruling Disy party, Averof
Neophytou, said ministers planned to meet late into the night.
State radio said legislation had been drafted to
restrict the outflow of cash from the island once the banks reopen. These would
need to be passed by the cabinet and by parliament.
The troika of the European Union, European Central
Bank and International Monetary Fund said it would only provide Cyprus with the
bailout if it raised 5.8bn euros through the levy.
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