Cypriot officials are discussing imposing a levy of around 25 per cent on bank deposits over 100,000 euros in the Bank of Cyprus, the island's finance minister has said.
Michael Sarris told reporters "significant progress" had been made in talks on the levy with officials from the European Union, European Central Bank and International Monetary Fund. He said the discussions could conclude this evening.
Cyprus' rescue deal has sent shivers through southern Europe after a key eurozone figure said it would be a model for future bailouts.
The future is uncertain for the people who must live with the consequences of Cyprus' "painful" bailout deal.
The Dutch Finance Minister has said the bank levy 'bail-in' on large depositors "pushes back the risks" from the rest of the eurozone.