Business, Finance & Economics

Cyprus banks stay shut amid fallout over failed bailout deal

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Nicosia, CYPRUS: Two men walk past a Bank of Cyprus branch on Nicosia's Makarios main thoroughfare.

Credit:

ALEX MITA

Banks in Cyprus will extend this week's holiday closure to Tuesday in order to prevent a possible run on banks, according to BBC News, marking the latest in the country's growing fiscal crisis. 

The Associated Press confirmed that banks in Cyprus would be closed Thursday and Friday, but did not say when they would reopen. The stock market is also closed, said BBC

More from GlobalPost: Cyprus parliament rejects EU bailout deal

The news comes a day after the Cypriot Parliament rejected a bailout plan put together by Cypriot, European Union and International Monetary Fund negotiators that would have taxed bank depositors in order to raise the 5.8 billion euros ($7.5 billion) Cyprus needs to qualify for outside economic aid. 

Officials held emergency meetings on Wednesday to discuss alternatives, said BBC

Ever the optimist, Germany said banks in Cyprus might not ever reopen barring a bailout breakthrough, according to BBC