21 March 2013/09 Jumada l-Ula 1434/01 Farvardin 1391/10 Yi-Mao (2nd month) 4711

After rejecting an privately funded European Union bailout, and after starting negotiations for a bailout from Russia, banks in Cyprus have decided to remain closed for another five days.

This is because many Cypriots plan on withdrawing all their money.  This is because the EU bailout plan involved a heavy tax on bank accounts.  ATMs are still working, but reports say it’s difficult to keep them filled with cash because of all the withdrawals.

There is also signs that two major banks are in trouble. Cypriot media is reporting that the government is going to create new banks to take over ‘good’ accounts from the Bank of Cyprus and Cyprus Popular Bank.  The two banks are rumored to be allowed to fail.

Officials with Cyprus Popular Bank are reportedly in Russia looking for a buyer.  Other reports say banks are being offered to Greek buyers.

The Ministry of Finance and Central Bank officials are also working on creating bonds that will be backed by the future development of natural gas sites from Leviathan.