Protestors hold Cyprus' flags during a rally outside the parliament in capital Nicosia, Cyprus, Friday, March 22, 2013. Cypriot authorities were putting the final touches Friday to a plan they hope will convince international lenders to provide the money the country urgently needed to avoid bankruptcy within days. ?The next few hours will determine the future of this country,? said government spokesman Christos Stylianides. (AP Photo/Petros Karadjias)
Protestors hold Cyprus' flags during a rally outside the parliament in capital Nicosia, Cyprus, Friday, March 22, 2013. Cypriot authorities were putting the final touches Friday to a plan they hope will convince international lenders to provide the money the country urgently needed to avoid bankruptcy within days. ?The next few hours will determine the future of this country,? said government spokesman Christos Stylianides. (AP Photo/Petros Karadjias)
Cyprus lawmakers vote on key bills aimed at securing a broader bailout package from international creditors in parliament in capital Nicosia, Cyprus, late Friday, March 22, 2013. Cyprus lawmakers have approved three key bills aiming to raise enough money to qualify the country for a broader bailout package and help it avoid financial ruin. (AP Photo/Petros Karadjias)
Cyprus lawmakers vote on key bills aimed at securing a broader bailout package from international creditors in parliament in capital Nicosia, Cyprus, late Friday, March 22, 2013. Cyprus lawmakers have approved three key bills aiming to raise enough money to qualify the country for a broader bailout package and help it avoid financial ruin. (AP Photo/Petros Karadjias)
A protestor rips an European Union flag during a rally outside the parliament in capital Nicosia, Cyprus, Friday, March 22, 2013. Cypriot authorities were putting the final touches Friday to a plan they hope will convince international lenders to provide the money the country urgently needed to avoid bankruptcy within days. ?The next few hours will determine the future of this country,? said government spokesman Christos Stylianides. (AP Photo/Petros Karadjias)
A Russian man resident in Cyprus holds a tablet with a picture of Russian President Vladimir Putin during a protest outside the Cypriot parliament, on Friday, March 22, 2013. Cypriot authorities were putting the final touches Friday to a plan they hope will convince international lenders to provide the money the country urgently needs to avoid bankruptcy within days. ?The next few hours will determine the future of this country,? said government spokesman Christos Stylianides.(AP Photo/Petros Giannakouris)
NICOSIA, Cyprus (AP) ? Politicians in Cyprus were racing Saturday to complete an alternative plan raising funds necessary for the country to qualify for an international bailout, with a potential bankruptcy just three days away.
Cyprus has been told it must raise 5.8 billion euros ($7.5 billion) in order to secure 10 billion euros in rescue loans from other European countries that use the single currency, and from the International Monetary Fund. The country's lawmakers soundly rejected an unpopular initial plan that would have seized up to 10 percent of people's bank accounts, and is now seeking a way to raise the desperately needed money.
Finance Minister Michalis Sarris said it was unclear when new legislation raising funds would be completed and put to a vote in Parliament, but that it could be as early as Saturday night.
Nicosia made a significant step towards cementing a new plan Friday night, when its lawmakers approved nine bills, including three crucial ones that will restructure ailing banks, restrict financial transactions in emergencies and set up a "solidarity fund" for contributions.
Time is running out fast. The European Central Bank has said it will stop providing emergency funding to Cyprus' banks after Monday if no new plan is in place. Without ECB's support, Cypriot banks would collapse on Tuesday, pushing the country toward bankruptcy and a potential exit from the 17-nation eurozone.
Representatives of the IMF, ECB and European Commission ? collectively known as the troika ? were meeting with officials in the Finance Ministry throughout the morning, negotiating several new laws, including a crucial bill that would impose some form of a tax on bank deposits. The percentages and where the tax would apply are unclear, but the deputy head of the DISY governing party, Averof Neophytou, said in Parliament Friday it could be less than 1 percent on all deposits.
Troika consent is essential as they will determine whether the plan that the Cypriots come up with would meet the requirements for the bailout before it is presented to the eurozone finance ministers for final approval.
A eurogroup meeting of the finance ministers is expected to be held in Brussels over the weekend, and Cyprus President Nicos Anastasiades was also to fly there, potentially as early as Saturday.
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