Cyprus Braces for Long Weekend – Part 7
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Parliament Passes Emergency Measures to Close Lender, but International Creditors Raise Doubts.

Cyprus remained at loggerheads with international creditors over a deal to rescue the country from financial collapse, even after it adopted a radical bank-restructuring plan that would close its second-largest lender and see its big depositors lose much of their savings.

Nicosia and euro-zone governments were in an 11th-hour bid Friday to avoid a meltdown of Cyprus’s financial system before Monday evening, when the European Central Bank has said it would cut off emergency liquidity for the country’s banks. Euro-zone finance ministers called a meeting for Sunday night in Brussels to discuss the fate of the Mediterranean island, according to two officials.

But Cyprus’s government was still scrambling to raise €5.8 billion ($7.5 billion) that it needs to prop up its banks and qualify for a €10 billion bailout from the euro zone and the International Monetary Fund. European and Cypriot officials familiar with the latest plans said they left a funding hole of some €3 billion.

Read More (subscription required): Cyprus Adopts Bank Overhaul Plan,
from The Wall Street Journal,