Banks still shut in Cyprus as island fights to stave off collapse

Cyprus’s central bank said lenders would remain closed until at least Tuesday amid growing speculation the Meditterranean island could become the eurozone member to exit the currency bloc.

Officials at the ECB were reported on Wednesday to be considering pulling the plug on Cypriot banks unless the country agreed to a new bailout package.

Jörge Asmussen, the ECB’s chief negotiator, warned that Cyprus’s decision to reject the terms of an €10bn (£8.6bn) bailout meant it could not guarantee support to domestic lenders for much longer.

Read more: http://www.telegraph.co.uk/finance/financialcrisis/9944095/Banks-still-shut-in-Cyprus-as-island-fights-to-stave-off-collapse.html