Cyprus bail-out: live - Telegraph Governor of the Cypriot Central Bank, Panicos Demetriades speaks to media representatives after a meeting with Cypriot President Nicos Anastasiades on THursday morning. Credit: EPA 10.30 Our foreign correspondent Richard Spencer is in Nicosia. He, along with Bruno Waterfield, Tom Parfitt and Alex Spillius, explain the implications of the ECB's liquidity cut off. They write: The European Central Bank will switch off the cash life support taps for banks in Cyprus wiping out £1.7 billion in British savings after next Monday unless the island signs off on a radical debt-cutting programme with the eurozone and International Monetary Fund. Unless a deal is in place the euro's central bank will withdraw "emergency liquidity assistance" leading to the immediate collapse of the two largest Cypriot banks and a financial crash in Cyprus. Cypriot banks are totally reliant on the ECB for funding and have taken over €9.1 billion in an emergency programme to ensure cash does not run out. 10.02 Reuters has very helpfully compiled the highlights from Jeroen Dijsselbloem's testimony before MEPs. Emphasis ours. On agreeing a bailout package: When I take stock of the situation, I see that this package has been voted against in the parliament, and that the Cypriot authorities are now looking for an alternative package. Whether that is possible within the outline that we have, in order to make it sustainable, is for me still a question. Within the Eurogroup we have said we will allow time and space for the Cypriots to look at different angles and to come up with different, alternative proposals. But they have to be financially sound, they have to be financially and economically sustainable and, of course, politically feasible. So, I'm not sure that this package is completely gone and failed, because I don't honestly see many alternatives. There is of course a different way to do the levy, and we're very open to a more fair approach to the way the levy is structured. On the bank levy: The levy I can strongly defend, because it is a direct way to ask a contribution of the deposits of the banking sector in Cyprus, which is inevitable if you want to a build a package which doesn't bring more loans and more debt to Cyprus than the €10bn I mentioned before. I still think it's probably inevitable there will be some kind of levy in the final package that we will agree upon. The Eurogroup thinks it's very important that we should have a fair burden share, and that means a larger contribution from large depositors than, of course, from small depositors. On Russian support for Cyprus: The only thing I can say that if the Russians were to say we could lend, that wouldn't help on the sustainability of the debt situation. Building up the debt in Cyprus does not help them to work towards a new future. An explanation of the €10bn bailout figure: Basically it led to the conclusion that the programme shouldn't be much bigger than €10bn, because the amount of the total loan to Cyprus is crucial for the question: 'Will they be able to pay off the debt, will they be able to find a new economic future?'. That was the first principal point to be made. The second point being that sustainable debt for Cyprus meant a debt-to-GDP ratio of no more than 100. The third would be that there had to be a restructured and a healthy financial sector to allow for new growth on Cyprus. 09.48 Dutch finance minister and head of the Eurogroup of eurozone finance ministers Jeroen Dijsselbloem has just finished his session at the European Parliament. Since we last checked in he's reminded everyone that the current bailout package is still on the table. He's also defended the legitimacy of the bank levy, saying the lawyers nodded it through. Eurogroup Chairman Dijsselbloem testifies before the Economic and Monetary Affairs committee at the European Parliament in Brussels on Thursday morning. 09.30 Ratings agency Fitch has released a statement on the Cyprus situation, decrying it as an example of "the dangers of ad hoc crisis response." It reckons the risk of contagion to other eurozone banking systems is low, but that any package involving a 'bail in', that is, bank levy on depositors, does increase the danger of contagion risks within the eurozone by setting a dangerous precedent. Here's an excerpt, and you can read the full statement here. The crisis surrounding Cyprus brings into focus the costs of policymakers' "muddling through" approach to the eurozone crisis. Without greater progress and clarity on the terms of financial and fiscal risk sharing between euro area member states, each sovereign and bank crisis prompts an ad hoc response that exacerbates uncertainty and undermines market confidence and financial stability. However, there are no immediate rating implications for other eurozone sovereigns. The proposed Cyprus bail-out programme confirms the strong desire of European policymakers to minimise costs to other eurozone taxpayers but marked the first attempt to "bail-in" bank depositors. But the necessary institutional framework and resolution mechanisms are not yet in place. To execute this strategy now, and critically to involve retail depositors, sets a potentially dangerous precedent for other eurozone countries, particularly those with weak banking sectors. 09.10 Earlier (08.24) we mentioned the ECB announcement that it will cut-off emergency liquidity assistance to Cypriot banks on Monday if no EU-IMF bailout deal is reached. If this happens, and Cyprus has secured no other source of funds, deposit holders its banks could lose everything as the island cannot afford deposit guarantees. Our man in Brussels Bruno Waterfield pointed this out yesterday, when the ECB first threatened to put a cut-off on its ELA programme. 08.50 Meanwhile Cypriot finance minister Michalis Sarris has given more details on his negotiations with Moscow. He denied that Cyprus is seeking an additional loan, and that instead he is after Russian investment in Cyprus' banking and natural gas sectors. He also said any support from Russia will be channelled to the banks. 08.47 Or has he? 08.45 However he has taken responsibility for the levy proposal that backfired. 08.33 More from Dijsselbloem now, who has admitted the Eurogroup should have done more on Saturday morning to assure Europeans that the Cyprus levy was a one-off. He's also expressed scepticism over the usefulness of another Russian loan, saying it would only serve to increase the island's debts. He gives the same reason for refusing to put up any more than the €10bn already offered by Cyrus' EU-IMF troika of lenders, and for why a bank levy is the best way forward. Indeed, he has said that some kind of levy on deposits is "inevitable" in the final package. He's also said the Russians have let him know they are not in favour of more loans to Cyprus, only in extending the exiting €2.5bn loan. 08.24 Meanwhile the ECB has helped pile the pressure on Cyprus by imposing a cut-off on its emergency liquidity assistance (ELA). It said it will maintain ELA at current levels until March 25 - the day the banks are due to re-open - but that the programme will then stop unless an EU IMF programme is in place that would ensure the solvency of the concerned banks. It's not clear what they would do if Cyprus secured a bailout from lenders other than the troika. 08.21 Mr Dijsselbloem is pushing responsibility onto the Cypriots 08.14 Meanwhile back in Brussels Dutch finance minister Jeroen Dijsselbloem, head of the Eurogroup of eurozone finance ministers, has been hauled before the European Parliament to face questions over the rejected Cyprus bailout plan. Jeroen Dijsselbloem, Dutch finance minister and head of the Eurogroup of eurozone finance ministers 08.10 More reports are emerging on Plan B: 08.05 The first reports of what's in Plan B are emerging: 08.02 Not forgetting that, with impeccable timing, there is a pre-planned EU-Russia summit going on. You can watch it live from Moscow here. 07.53 A reminder of the kind of deal Moscow might be after. Jacob Nell, a Moscow-based economist, told Reuters that a Cypriot deal could follow in the footsteps of ones made with Russia's ex-Soviet neighbours in which debts owed to state gas export monopoly Gazprom were swapped for assets. It might be possible for part of this loan to be convertible over time to equity in Cypriot assets, such as privatised state assets and hydrocarbon rights. There are precedents in Belarus and Ukraine for similar deals involving Russia. 07.48 Cypriot finance minister Michalis Sarris has told reporters that Cypriot-Russian cooperation in the banking and energy sectors will be discussed today. There's a lot of teams now working on a number of issues. Banks, natural gas, are there opportunities (on which) we can base some cooperation and some support from Russia. We've asked for help clearly, but something that would make also economic sense for Russia. 07.22 And we've had confirmation from Moscow that its finance minister Anton Siluanov will resume talks with his Cypriot counterpart Michalis Sarris today. Michalis Sarris, Cypriot finance minister, as he emerged from initial talks with his Russian counterpart yesterday 07.18 The Cypriot stock exchange, which trades shares totalling around €600,000 and bonds worth €40,000 confirmed it will also remain closed on Thursday and Friday. The bourse said its decision followed that of authorities to extend bank closures to next week. It cannot operate without trade of bank stocks, which account for 70pc of its turnover. 07.15 Russian prime minister Dmitry Medvedev, who yesterday blasted the EU's "elephant in a china shop" response to the Cyprus debt crisis, has threatened to slash the share of Russia's foreign currency reserves held in euro. He also complained that accounts of Russian government agencies in Cyprus had been blocked. In an interview published on the Russian government website, Mr Medvedev said: A large number of our open public structures work through Cyprus. They now have money blocked for reasons that are unclear, because the source of that money is obvious. This money is declared everywhere. These include government structures. That's why we have to take quite a firm position on the events around Cyprus and regulating the debt of Cyprus. 07.00 Overnight Asian markets inched higher on the back of an up-tick in Chinese factory activity and the US Federal Reserve's commitment to stick to aggressive stimulus. The Nikkei in Tokyo hit a four-and-a-half year high, led by exporters cheered by the Fed's announcement. Meanwhile Hong Kong shares traded flat while in Shanghai shares edged up 0.4pc. 06.30 Good morning and welcome to our rolling coverage of the Cyprus bailout. Cypriots wake up to much the same reality as they did yesterday morning - there is no new deal and the banks are still closed. In fact, they will not re-open until Tuesday at the earliest. Their finance minister Michalis Sarris is still in Moscow. He said he wouldn't leave until he had secured a deal. He's after a five-year extension to an existing €2.5bn loan and an extra €5bn loan to cover the shortfall created by cancelling the bank levy. Russia, whose citizens have some €30bn deposited in Cypriot bank accounts, is still furious it was left out in the cold when the levy was first negotiated between Cyprus and its EU-IMF troika of lenders. Prime minister Dmitri Medvedev launched a verbal missive against the EU's handling of the Cyprus debt crisis yesterday, comparing it to Soviet-style expropriation and likening the EU's response to "an elephant in a china shop." However, no deal from Moscow is yet forthcoming. There are various reports as to what Russia might want in return for aid, including a naval base in Cyprus, exclusive exploration rights to Cyprus' offshore gas fields in the Mediterranean, and even jurisdiction over the small island. Although the Eurogroup of eurozone finance ministers vowed to "stand by" Cyprus, they also seem to be standing by their original proposition. The ECB has also warned the island that it cannot continue to provide liquidity if the banks become insolvent, as this would contravene EU law. Indeed, German finance minister Wolfgang Schauble said the island's two largest banks were already effectively insolvent. The message is clear - if Cyprus does not accept a bailout, the central bank will not continue to prop up its banks. Meanwhile other offers are on the table. Last night Bloomberg reported that Greek finance minister Yannis Stournaras, aid some of the €50bn earmarked for the recapitalisation of Greece's banks could be used for Cyprus' lenders. The Cyprus orthodox church has pledged all of its wealth - including that tied up in property - to help shore up the economy. Cypriot leaders, meanwhile, spent much of yesterday cobbling together a 'Plan B', as it looked increasingly unlikely that Mr Sarris would secure a deal in Russia. The plan is due to be presented to parliament this morning, despite reports the troika was likely to reject it. The proposals are thought to still include a bank levy in some form, as well as conversion of state pension funds to government bonds. With the president and his deputy both declaring they only have "hours, not days" to save the nation from collapse, we should expect some more solid progress today.