Lawmakers in Cyprus on Tuesday voted down a measure to seize a portion of people’s bank deposits, a crucial piece of a larger bank bailout agreement, the Associated Press reported.
The rejection leaves Cyprus’s bailout in question. Without external funds, the country’s banks face collapse and the government could go bankrupt. Nicosia will now have to come up with an alternative plan to raise the money: the government could try to offer a compromise bill that would be more palatable to lawmakers.
Cypriot banks will remain closed until an agreement is reached, hopefully in the next few days.
