As Cypriot politicians raced to find a new financial rescue plan ahead of a Monday deadline, tensions built in the streets of the capital. Residents withdrew what money they could from ATMs amid fears the banks could collapse.

The Cypriot government is struggling to gain parliamentary support for its levy on bank accounts.

Cyprus’ finance minister urged politicians to approve a first batch of spending cuts and tax hikes agreed with international creditors by December 13, when the other 16 EU countries that use the euro are expected to discuss a bailout deal.

Common supervision of European banks, possibly by the European Central Bank, would help restore confidence and protect the financial system, ECB Governing Council member Panicos Demetriades said yesterday.