Forex Flash: Cyprus mulls options amidst latest setbacks – Deutsche Bank

FXstreet.com (Barcelona) - According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Regarding the situation in Cyprus, President Anastasiades is set to draft a new funding plan following a cabinet meeting yesterday evening. The plan is said to include a revised version of the deposit levy according to the article and follows the stalling of talks between Cypriot Finance Minister Sarris and his counterpart in Moscow yesterday.”

The Ekathimerini wrote that the possibility of Moscow demanding involvement in the extraction of Cypriot natural gas or a naval or air force base on the island remains an option. Other alternatives appear to be closing though, with Russian lenders VTB and Gazprombank denying they were set to take over Cyprus Popular Bank or were unwilling to buy the bank for a symbolic sum while taking over its capitalization needs (Ekathimerini).

Meanwhile the ECB is likely to delay a decision on whether to continue to supply Cypriot banks with liquidity as it awaits clarity on the government's bailout plans, according to Bloomberg who cite EU officials.