Government holds off debate on one-off bank deposit tax
Monday 18 March 2013
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EmailCyprus's parliament delayed a debate on a hugely controversial tax on bank deposits today that has been demanded in return for a €10 billion (£8.7bn) bailout.
The vote on plans for a one-off levy of 6.75 per cent on deposits under €100,000 (£87,000) and 9.9 per cent above it has been pushed back to tomorrow.
The IMF and European Central Bank-demanded tax has been widely condemned in Cyprus and may not pass through the 56-member parliament.
Cypriots rushed to banks to withdraw their savings, but found many of them shut on Saturday.
The levy is due to be taken on Tuesday after a bank holiday tomorrow. Some eurozone countries have accused Cypriot banks of serving as money laundries for "dirty" Russian cash.
It's estimated that Russians currently have around €20bn (£17bn) sitting in Cyprus's banks.
The British government has promised to compensate the 3,500 troops it has stationed on the island.
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