Any modification to the deposit seizure must be approved by the other finance ministers in the eurozone -- who planned to hold a phone conference later Monday -- before the Cypriot parliament can vote on it.
The stakes are high for the country of a million people, because a rejection of the package could see the country go bankrupt and possibly out of the common euro currency. Officials also fear a run on Cypriot banks no matter which way the voting goes, though immediate consequences for other eurozone countries are limited.
The decision by Cyprus' 16 partners in the eurozone and the International Monetary Fund marks a significant shift in the way the debt crisis is being addressed. It is the first time that savings have been touched in a financial bailout. While it is not expected to cause a run on banks in Italy or Spain, it may make savers more likely to withdraw their funds.
"This sets a worrying precedent for Spain and Italy, but doesn't make widespread bank runs imminent," said Dario Perkins, an analyst at Lombard Street Research.
Cypriot authorities said they had no choice in the matter.
"I believe [the levy] was a bad idea but they imposed it on us," Cypriot Finance Minister Michalis Sarris said Monday.
Cyprus' government spokesman, Christos Stylianides, accused eurozone countries of using "blackmail tactics" by insisting that if Cyprus did not raid savings accounts, it would have to immediately shut down the country's top two lenders.
White House press secretary Jay Carney declined to comment on Cyprus' savings grab. "We're obviously monitoring the situation right now," Carney said.
One of the main reasons given for the raid on deposits is that Cyprus' banks, which are in deep trouble after taking huge losses on bad Greek debt, are eight times the size of the economy. The Cypriot government would be unable to pay back the amount of loans it would need to rescue the banks.
Another reason for the raid is that Russian money accounts for a large part of the banks' deposits. An estimated €20 billion ($26.17 billion) of Russian money sits in Cypriot banks, part of it thought to be linked to money-laundering. European officials were loathe to give Cyprus bailout loans to protect those Russians' savings.
German Chancellor Angela Merkel needs to win support for a Cypriot bailout in Parliament amid widespread skepticism in the country over whether Cypriot authorities have done enough to combat money laundering.
"It is good that the Cypriot government, the Cypriot parliament, are now taking more time to reach a better solution," Germany's Vice Chancellor Philipp Roesler told reporters in Berlin. "But it is important to us that the overall volume is achieved all the same.