Cyprus financial future showed no sign of lifting

The question about the financial future of Cyprus showed no sign of lifting Thursday, with officials reportedly set to introduce new legislation to try to prevent capital from leaving the country, in the middle of negotiations to bolster finances country.

Laws that restrict capital to stop the flight of deposits in the country, and to establish new rules for insolvent banks likely will appear before the country's parliament on Thursday, The Wall Street Journal.

The laws would be needed before banks reopen their doors to customers - now reports an event that will take place next Tuesday.

Banks have been closed this week after the announcement last Saturday that about 10 million euros (13 billion) financial aid agreement between Cyprus and Trioka the - the Eurogroup, the European Central Bank and the International Monetary Fund - would require a rate once bank deposits to raise € 5.8 billion.

The tax deposit plan sparked outrage and was roundly rejected by parliament on Tuesday the country.
The Government of Cyprus has returned to the negotiating table with the Trioka and is also in talks with Russia, the country paid € 2.5 billion two years ago, despite signs of progress are limited so far.

"There is no easy option will be available for Cyprus after its parliament rejected the bailout terms offered by the Troika," said Credit Agricole economist Frederik Ducrozet.

Brown Brothers Harriman strategists said that one of the key questions is whether Cyprus before the European Central Bank will extend credit payday loan, since the agreement on Saturday rejected.
"He had previously threatened to cut," the strategists said. "This was a hard place on the other side of the rock of conditionality, which includes a tax to all depositors, that Cyprus is on the last weekend," they said.