Russia turns back on Cyprus debt crisis as bankruptcy looms

NICOSIA (AFP) - Russia on Friday, March 22, spurned investment proposals that would have helped rescue the Cyprus economy, piling pressure on Nicosia as it races to stave off financial meltdown and possible exit from the eurozone.

The European Union has given Nicosia until Monday to raise 5.8 billion euros (S$9.4 billion) to unlock loans worth 10 billion euros or face being choked from European Central Bank emergency funding in a move that would bankrupt the island.

EU sources have said that the bloc is ready to eject Cyprus from the eurozone to prevent contagion of other debt-hit members such as Greece, Spain and Italy.

MPs were to meet in emergency session on Friday to race through a raft of bills aimed at raising the funds and heading down a growing sense of anger and panic among Cypriots fearful that their life savings will disappear in the rubble of a banking collapse.