EU's ultimatum to Cyprus: raise the $5.8 billion euros by Monday or the ECB cuts off the liquidity lifeline to Cyprus and the bailout will be withdrawn. If Cyprus isn't able to raise the funds, it could see a complete collapse of its financial system, complete economic ruin, and be forced to leave the Eurozone. Somewhat like a hostage situation, except instead of one captive an entire country's socioeconomic future is held captive.
So will this happen? Well lets stand back for a second and consider: the Russians don't want Cyprus to collapse. The troika doesn't want to deal with the contagion effects of a Cyprus collapse. And the Cypriots sure as heck don't want a Cyprus collapse. All the parties involved (including the antagonist) don't want to see a Cyprus collapse. So chances are, there will be no Cyprus collapse.
In other news about Cyprus, it is currently discussing loans and a potential deal with Russia in terms of cooperation in the banking and energy sectors. Also, here are some interesting tidbits from the frenzied Eurozone call about Cyprus.
To read more about Cyprus: here.
To read more about Cyprus' effect on safe haven assets: here.