London: Cyprus' largest bank has warned that the Cypriot economy is 'on the brink' and immediately needs a liquidity lifeline from Europe.
Bank of Cyprus, which is itself said to be in the need of urgent funding to prevent collapse, said that 'the next move may prove its salvation or destruction.'
The European Central Bank has given the country time till Monday to raise the funds it needs to secure a bailout, the BBC reports.
They need to find 5.8 billion Euros to qualify for a 10 billion Euro bailout loan from the EU and International Monetary Fund (IMF).
Political leaders discussed the options with President Nicos Anastasiades on Thursday, and the package was then discussed by the cabinet.
But MPs said they needed more time to study the nine bills that make up the draft legislation.
According to the report, if no "Plan B" can be found by Monday, the ECB may cut off funding to the island's banks, it said in a statement.
This would trigger their collapse and possibly the country's exit from the euro, the report added.
First Published: Friday, March 22, 2013, 10:32