Cyprus proposes no charge on small account holders

Cypriot finance officials are revising a planned financial bailout to relieve small account holders from having to pay a charge on their savings in order to secure an international rescue of the country

Protesters who wrote "NO" on their hands protesting outside of the parliament in capital Nicosia, Cyprus, Monday, March 18, 2013. A vote on a bailout package for Cyprus that includes an immediate tax on all savings accounts has been postponed until Tuesday evening. Yiannakis Omirou, the speaker of Parliament, said the delay was needed to give the government time to amend the deal reached over the weekend that prompted an outcry from those who thought their money was safe. In order to get euro10 billion ($13 billion) in bailout loans from international creditors, Cyprus agreed to take a percentage of all deposits � including ordinary citizens' savings � an unprecedented step in Europe's 3 �-year debt crisis. (AP Photo/Petros Karadjias)

NICOSIA, Cyprus (AP) — Cypriot finance officials are revising a planned financial bailout to relieve small account holders from having to pay a charge on their savings in order to secure an international rescue of the country's troubled banks.

Under a new draft bill discussed in Parliament's finance committee Tuesday, deposits below €20,000 ($25,900) would be exempt from any charge. Those between €20,000-€100,000 would have a 6.75 percent levy imposed, and those above €100,000 would have a 9.9 percent charge.

European officials have said €5.8 billion of the €15.8 billion rescue package must be raised by Cyprus.

The country's central bank governor recommended that no levy be imposed on accounts below €100,000 — the amount that is insured by the government.
Associated Press
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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