Cyprus yesterday ruled out any question of abandoning the eurozone, hours after the principal backer of its government floated the option if bailout conditions were too tough.

Cyprus authorities have detained a man on suspicion of being involved in planning a terrorist attack on the east Mediterranean island, a police spokesman said.

Cyprus faces the choice of asking for a bailout from its European partners in the euro or from Russia, and will decide where to turn after this weekend’s crucial elections in Greece, officials said today.

New Turkish Cypriot leader Dervis Eroglu vowed to continue peace talks amid fears his victory could halt reunification negotiations with the Greek side and scupper Turkey’s bid for European Union membership.