Cyprus leaders seek last-gasp deal to save economy

Associated Press

NICOSIA, Cyprus (AP) — Cyprus' president is meeting with party leaders to secure their support for revised plan to raise 5.8 billion euros ($7.5 billion) that international creditors have demanded in exchange for a larger rescue package that would prevent the country's bankruptcy.

Cypriot authorities are rushing to come up with a new plan Thursday after lawmakers soundly defeated an earlier proposal to seize up to 10 percent of all domestic deposits to finance the rescue.

With the economy potentially days away from ruin, banks have stayed shut to prevent a run.

Cypriot government officials said the new plan includes a smaller deposit grab to ease the pain on small savers, restructuring the country's troubled banks and raising money from domestic sources including pension funds and subsidiaries of foreign banks active in Cyprus.