Cyprus Lawmakers to Vote on Bailout Package Levy

Cyprus President Nicos Anastasiades will try to persuade lawmakers to back a plan to impose losses on the island nation’s depositors today as part of a 10 billion-euro ($13 billion) bailout aimed at preventing a financial collapse and a possible departure from the euro area.

Anastasiades will defend his decision to accept a rescue that includes the euro area’s first move to penalize depositors before the parliament session on the legislation begins at 4 p.m. in Nicosia. The vote comes a day after originally planned as Anastasiades fended off fury from Cypriot voters and fought to secure the majority he needs.

“My decision, to have the hoped-for results, needs the approval of parliament,” Anastasiades said in a televised address to the nation yesterday. “I appeal to the parliamentary parties that their decision, one I shall fully respect, is one guided by what is in the best interests of citizens and the homeland.”

Anastasiades, 66, has reversed himself on his pledge not to accept losses for depositors as he was elected the country’s leader on Feb. 24 on a promise to revive stalled bailout talks. Euro-area finance ministers meeting in Brussels on March 15 and March 16 agreed to tax Cyprus bank deposits.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.