Eurozone finance ministers are now pressing for measures that would shrink Cyprus's banking system, these measures were "ironically" rejected last week as being too extreme.
Bloomberg reports that finance ministers want to close the two biggest banks in Cyprus and freeze the assets of uninsured depositors.
Cyprus Popular Bank (CPB) and the Bank of Cyprus Plc would be split to create a bad bank.
Insured deposits (below the European Union ceiling of 100,000 euros) would go into the good bank, whilst uninsured deposits would go into the bad bank and be frozen until assets could be sold.
It is estimated (though as with all estimates this may well be wildly off the mark) that losses could be 40%.
Let's see how that goes down with the good people of Cyprus!