Cyprus bailout deadline set for Monday Cyprus is "definitely a systemic risk, and the unrest of the last couple of days have proved that, unfortunately," said Dutch Finance Minister Jeroen Dijsselbloem, the head of the caucus of countries that share the euro, in the European Parliament on Thursday. Cyprus's banks have been shuttered all week in an attempt to prevent a bank run, as Cypriot policymakers on Tuesday dramatically rejected an unprecedented effort to raise bailout funds by seizing a portion of all bank deposits. Cyprus has turned to Russia in a search for money, and Cyprus state television has reported that other possibilities include seizing a portion of all deposits above $129,000, nationalizing private pension funds and restructuring the troubled banking sector. In a terse statement Thursday, the European Central Bank said its governing council had decided to extend emergency funding to Cyprus's overextended banks until Monday. After that, emergency funding "could only be considered if an EU/IMF program is in place that would ensure the solvency of the concerned banks." Cyprus's troubles have exacerbated Europe's debt crisis, which has entered its fourth year. Europe has made a fragile recovery since August of last year, when the European Central Bank announced it would take unprecedented measures to keep the borrowing costs of troubled countries at sustainable levels. But the tension in Cyprus - which comprises just 0.2 percent of the broader euro-zone economy - has threatened the stability of Italy and Spain, both of which have weak banking sectors. European markets were down slightly in Thursday morning trading. The euro was down slightly against the dollar, at $1.2906. Europe and the International Monetary Fund have demanded that Cyprus raise $7.5 billion of a planned $20 billion bailout on its own. The IMF has been concerned that the Mediterranean country would not be able to repay the bailout if it receives any more money. And many European countries are loath to chip in for a bailout if bank depositors, many of whom are wealthy Russians, walk away without having to put in a cent. Deposits in Cyprus's banks were seven times the size of its economy at the end of 2012, an unusual situation fostered by low taxes and reputation for lax regulation. Many European policymakers suspect it is a hub for Russian money laundering. Cypriot banks hold $88 billion in deposits, of which $49 billion is in the form of deposits over $129,000, according to analysts" estimates. Cypriot Finance Minister Michalis Sarris has been in Moscow since late Tuesday to try to obtain emergency funding from Russian leaders, who have been apoplectic about the possibility that Russian bank deposits in Cyprus would take a hit. Russian Prime Minister Dmitry Medvedev told reporters Wednesday that the initial bailout proposals to raise money with a one-time tax on all deposits "are of an expropriator, confiscator nature," Interfax reported. "I cannot compare it to anything but some decisions made at a certain period of time by the Soviet authorities, who did not care much about people's savings," Medvedev said. But as of mid-afternoon Thursday in Moscow, no agreement had been reached between Russia and Cyprus. Cypriot Energy Minister Georgios Lakkotrypis was also in Moscow, fueling speculation that Cyprus was offering access to its natural gas resources as a sweetener to any deal. Cyprus's Orthodox Church on Wednesday offered to mortgage the entirety of its substantial assets to raise funds toward the bailout. Cypriots continue to take money out of ATMs as fast as they are loaded with cash. The original bailout proposal announced early Saturday would have imposed a one-time tax of 6.75 percent on all deposits under $129,000 and 9.9 percent above that level. But it sparked a furious response and caused worries that bank deposits elsewhere in Europe could also be vulnerable if more countries need bailouts.