The future of Cyprus belongs outside the euro, its spiritual leader said yesterday, as its President returned to Brussels for last-ditch talks on a bailout to save the economy from meltdown.
There was a dramatic indication of the dire state of the banks when the two main lenders, both facing collapse without a deal, announced that customers would be able to withdraw only €100 a day from cash machines.
President Nicos Anastasiades and party leaders were locked in negotiations last night with creditors including Christine Lagarde, the head of the International Monetary Fund, and eurozone finance ministers, as it seemed that up to 25 per cent would be taken in a “haircut” from deposits of more than €100,000 at Bank of Cyprus.
The country has