The countdown continues for Cyprus to find a solution that would provide emergency funding without having to bow to the conditions on the bailout offered by the Troika (made up by representatives from the European Commission, the International Monetary Fund and the European Central Bank).

The Cypriot Parliament refused to implement a bank levy that would have provided it with the €5.8bn in funds required for Nicosia to receive the purportedly agreed €10bn in rescue funds. Cyprus avoided hitting its depositors with a haircut despite the fact that policymakers such as the Eurogroup's President, Jeroen Dijsselbloem, insisted that the deal was "fair".

However, the European Central Bank (ECB) is putting the pressure on and has warned that Cyprus must put the final details on a bailout plan by Monday or it will cut off the banks from the ELA (Emergency Liquidity Assistance) programme. "The Governing Council of the ECB decided to maintain the current level of ELA until Monday, March 25th.

Thereafter, ELA could only be considered if an EU/IMF programme is in place that would insure the solvency of the concerned banks," the monetary authority said in a statement.

JM

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