enet.gr EnetEnglish.gr, 11:11 Sunday 17 March 2013
Cypriot parliament postpones debate on savings levy
The debate will be held on Monday
Cypriot president Nicos Anastasiades (AFP)Cyprus's parliament has postponed an emergency session to decide whether savers must pay a levy on bank deposits under terms for an international bailout.
The debate was initially scheduled for Sunday but was postponed until Monday, state media said.
The eurozone demand that savers pay up to 10% of deposits as a condition for the 10bn euro bailout.
Cypriots emptied cashpoints after news emerged of bailout terms which broke a previous euro zone taboo on protecting depositors in its efforts to address the regional debt crisis.
Newly elected Cypriot President Nicos Anastasiades said refusing the bailout would have led to the collapse of the island's two largest banks.
The tax on deposits in Cyprus, which accounts for only 0.2% of the eurozone's economy, is expected to raise up to 6bn euros as a condition for the bailout, mainly needed to recapitalise banks.
Those affected will include rich Russians with deposits in Cyprus and Europeans who have retired to the island as well as Cypriots themselves.
The size of foreign deposits in Cyprus - estimated at 37% of the total - was one reason the euro zone agreed to the tax on savings, to take effect when banks reopen on Tuesday. Cyprus stopped electronic transfers over the weekend.
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