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| Cypriot president holds bailout talks in Brussels | |
| (about 4 hours later) | |
| Cypriot President Nicos Anastasiades has arrived in Brussels as his country continues to seek a last-minute deal to avoid possible bankruptcy. | |
| The trip comes after a day of talks between Cyprus and the EU and IMF ended inconclusively. | |
| Cyprus needs to raise 5.8bn euros (£5bn) to qualify for a 10bn bailout. | |
| The EU's commissioner for economic affairs Olli Rehn said the island had only "hard choices left" and must agree terms on Sunday. | The EU's commissioner for economic affairs Olli Rehn said the island had only "hard choices left" and must agree terms on Sunday. |
| Cypriot leaders are struggling to agree how to raise the money. | Cypriot leaders are struggling to agree how to raise the money. |
| Mr Anastasiades entered the EU's headquarters in Brussels shortly after 14:00 local time (13:00 GMT) on Sunday, AFP news agency reported. | |
| His visit comes ahead of a meeting in Brussels of the Eurogroup - the finance ministers of the 17 eurozone countries - on Sunday evening. | |
| The ministers are expected to consider Cyprus's proposals for a bailout for final approval. | |
| 'Very tight' | 'Very tight' |
| Parliament rejected a bank levy on small and large deposits earlier this week, but a levy limited to large deposits is said to be back in consideration following pressure from Brussels and Berlin. | Parliament rejected a bank levy on small and large deposits earlier this week, but a levy limited to large deposits is said to be back in consideration following pressure from Brussels and Berlin. |
| Cyprus needs the approval of the "troika" - the IMF, European Central Bank and European Commission - in order to present a rescue plan to the eurozone ministers. | |
| If a deal on an alternative agreement fails, the European Central Bank (ECB) says it will cut off funds to the banks, meaning they would collapse, possibly pushing the country out of the eurozone. | If a deal on an alternative agreement fails, the European Central Bank (ECB) says it will cut off funds to the banks, meaning they would collapse, possibly pushing the country out of the eurozone. |
| "The negotiations are at a very delicate stage," said government spokesman Christos Stylianides. "The situation is very difficult and the time limits are very tight." | "The negotiations are at a very delicate stage," said government spokesman Christos Stylianides. "The situation is very difficult and the time limits are very tight." |
| Mr Rehn said: "It is essential that an agreement is reached by the Eurogroup on Sunday evening. This agreement then needs to be swiftly implemented by Cyprus and its eurozone partners. | |
| "Unfortunately the events of recent days have led to a situation where there are no longer any optimal solutions available," he added. | "Unfortunately the events of recent days have led to a situation where there are no longer any optimal solutions available," he added. |
| He said it was clear that the near future for Cyprus would be "very difficult" but that the EU stood ready to help. | He said it was clear that the near future for Cyprus would be "very difficult" but that the EU stood ready to help. |
| Media reports said Cyprus was considering a 20% levy on deposits of more than 100,000 euros (£85,000) in its biggest lender, Bank of Cyprus, and a 4% levy on deposits above the same level at other banks. | Media reports said Cyprus was considering a 20% levy on deposits of more than 100,000 euros (£85,000) in its biggest lender, Bank of Cyprus, and a 4% levy on deposits above the same level at other banks. |
| German pressure | German pressure |
| The bank levy that was rejected last week would have taken 6.75% from small savers and 9.9% from larger investors. | The bank levy that was rejected last week would have taken 6.75% from small savers and 9.9% from larger investors. |
| It caused widespread anger among ordinary savers in Cyprus. | |
| There is concern on the island that a levy on large-scale foreign investors, many of whom are Russian, would damage its financial sector. | There is concern on the island that a levy on large-scale foreign investors, many of whom are Russian, would damage its financial sector. |
| But leading Cypriot bankers have urged parliament to accept a levy, with small savers exempted. | But leading Cypriot bankers have urged parliament to accept a levy, with small savers exempted. |
| Correspondents say Germany has pushed hard for a levy on investors who have benefited from high interest rates in recent years, rejecting a Cypriot plan to use money from pension funds. | Correspondents say Germany has pushed hard for a levy on investors who have benefited from high interest rates in recent years, rejecting a Cypriot plan to use money from pension funds. |
| Cypriot Finance Minister Michael Sarris recently travelled to Moscow in an unsuccessful attempt to get Russian help. | |
| Banks in Cyprus have been closed since Monday and many businesses are only taking payment in cash. | Banks in Cyprus have been closed since Monday and many businesses are only taking payment in cash. |
| On Saturday afternoon more than 1,000 bank employees marched to the Cypriot finance ministry, stopping briefly at the presidential palace. | On Saturday afternoon more than 1,000 bank employees marched to the Cypriot finance ministry, stopping briefly at the presidential palace. |