* Laiki bank to close with only insured deposits safe
* Accounts above €100,000 frozen to address debt
* Without deal islands faced possible eurozone exit
Cyprus president in Brussels for crucial talks
With time running out, Cyprus and its Troika of lenders have just hours to agree a deal, An emergency meeting of eurozone finance ministers and the International Monetary fund begins at 6pm Brussels time (5pm GMT), and should determine whether Cyprus receives its desperately needed €17bn loan package.
Failure would put the country’s future in the eurozone at grave risk, with vital liquidity provided by the European Central Bank due to be withdrawn on Monday.
According to reports last night, Cyprus may impose a 20% levy on deposits over €100,000 at its biggest lender, the Bank of Cyprus, with other large depositors losing around 4%.