Cyprus's banks will stay closed until Thursday

Fears of a bank run mount.

A view of Cyprus's seond largest bank. Photograph: Getty Images

Banks in Cyprus will stay closed until Thursday while the decision over a levy on saver's deposits continues.

Banks were already shut for Monday's bank holiday, but politicians will now extend the holiday amid fears of a bank run.

News of the deal struck on Saturday sparked protests in Cyprus, and unsettled investors across Europe and Asia. The uproar has lead to talks to soften the proposals, including the idea of cutting the levy from 6.7 per cent to 3 per cent.

The tax plans were drawn up in order to raise €5.8bn as part of a €17bn bailout, as demanded by European creditors to help fund Cyprus's rescue.