Vote on Bailout Levy Might be Postponed as Official hope to Modify to Avoid Defeat

Cypriot officials are working on tweaks to the controversial bailout plan to limit the damage to small savers from measures intended to seize up to 10% of all bank account deposits.

A parliamentary vote on the measure, planned for Tuesday, may be postponed as most members of parliament plan to reject it in its current form.

Cypriots have been outraged since they woke up this weekend to find an unprecedented EU bailout agreement that meant anyone with money in a Cyprus bank account – including the smallest current accounts or no-interest accounts – would have a percentage seized in order to secure an international deal to save the Mediterranean island from default and banking collapse.

Cypriot and eurozone officials are trying to modify the levy of 6.75% on deposits of up to €100,000 (£85,000), and 9.9% on those above €100,000 to ease the burden on small savers. A revised draft bill seen by Reuters would exempt savings under €20,000, charge a rate of 6.75% for amounts between €20,000 and €100,000 and maintain a 9.9% tax on deposits above that level.

via Guardian

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.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza