Cyprus To Compensate Those Forced To Pay Bank Tax

[HuffingtonPost]

               

NICOSIA, March 17 (Reuters) - Cyprus's president said on  Sunday that savers made to pay a tax on bank deposits as part of  a sovereign bailout deal will be compensated by shares in banks  guaranteed by future natural gas revenues.                

In a televised address to the nation, President Nicos  Anastasiades said he had to accept a tax on bank deposits in  return for international aid, or else the island would have  faced bankruptcy.                

"The solution we concluded upon is not what we wanted, but  is the least painful under the circumstances," Anastasiades  said.                

Cypriot bank depositors will be required to forfeit part of  their savings under a deal brokered by euro zone finance  ministers on Saturday to offer the Mediterranean island state a  10 billion euro bailout. The levy will generate almost 6.0  billion in savings.                

The news triggered a run on cashpoints on Saturday,  depleting them within hours while it was unclear whether banks  would open for business on Tuesday after a Monday bank holiday.                

Parliament has to approve the levy, which calls for a 9.9  percent cut on deposits exceeding 100,000 euros and 6.7 percent  on deposits below that figure.

Via: HuffingtonPost