LONDON (CNNMoney)
The country's parliament is scheduled to decide the measure's fate Tuesday, but officials have already twice delayed a vote. A domestic political consensus has yet to emerge, leaving the body deadlocked, with the government trying to amend the plan in an effort to secure reluctant lawmaker support.
A failure to secure bailout money would throw Cyprus' finances into doubt and could widen political fissures on the continent. The bailout, while small compared to the emergency loans supporting other troubled European nations like Greece, represents more than half the size of the €18 billion Cyprus economy.
Banks in Cyprus will remain closed until at least Thursday. Unable to function without the services of the banking sector, the Cyprus Stock Exchange has announced it will stay closed as well.
The unprecedented tax on bank deposits led to a run on cash machines in Cyprus over the weekend. It also spooked investors, who feared that other weak eurozone states could eventually be forced down the same path, despite EU statements to the contrary.
Related story: 5 reasons Cyprus bailout matters
The most controversial provision of the bailout is a one-time levy of 9.9% on deposits exceeding €100,000. Smaller depositors would be subject to a levy of 6.75%
It is the first time that the EU has insisted on such terms for bank depositors as part of a bailout. The EU's bailouts of other nations, such as Greece, have been accompanied by strict budget restrictions and led to losses for bond holders and shareholders.
After an intense backlash in Cyprus and around the eurozone, EU officials said they would endorse a change to the original bailout plan that shielded small bank customers more than the proposal.
But eurozone officials generally stuck to their guns. The reform plan put forward Saturday "is the best guarantee for a more prosperous future for Cyprus and its citizens," EU officials said.
EU concerns about money laundering also hampered progress on a bailout. Cypriot banks have large volumes of international deposits, with Russian businesses believed to hold about $19 billion, according to ratings agency Moody's. As part of the bailout deal, Cyprus has agreed to an international anti-money laundering audit.
Related story: Why Russia is irate about the Cyprus bank tax
Russia has come to Cyprus' aid in the past, providing a €2.5 billion loan in 2011 to shore up government finances. But its participation in the new rescue was looking uncertain Monday after President Vladimir Putin attacked the tax on bank deposits.
"If such a decision was made, it would be unfair, unprofessional and dangerous," Putin spokesman Dmitry Peskov was quoted as saying.
In addition, a finance ministry spokesman said Russia was reviewing its position after not being consulted on the decision to impose the levy. On Tuesday, the office of Cypriot Finance Minister Michalis Sarris confirmed he had been dispatched to Moscow, presumably in an effort to smooth feelings.
The International Monetary Fund was expected to contribute to the deal as it has in others. Christine Lagarde, the fund's managing director, said Saturday that she supports the terms and would recommend that the IMF help provide financing for it.
In addition to the tax on bank deposits, other conditions for the bailout loans include an overhaul of the financial sector and an increase in corporate taxes.
Cyprus is the fourth of 17 eurozone states to be granted a bailout by its EU partners and the IMF, after Greece, Ireland and Portugal. Spain has been given EU assistance to rescue its banks, but has so far avoided asking for a full sovereign bailout. 
First Published: March 19, 2013: 6:39 AM ET
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