Cyprus Considers Zero Tax on Smaller Bank Deposits; All Banks Remain Closed
March 19th, 2013Via: BBC:
The Cyprus finance ministry suggests savers holding less than 20,000 euros (£17,000) would be exempt from a bank levy which has caused much alarm.
Amounts between 20,000 and 100,000 euros would face a 6.75% tax. The levy on savings above 100,000 would remain at 9.9%. The levy has enraged Cypriots.
The earlier plan was to tax all savings under 100,000 euros at 6.75%.
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Fearing a run on accounts, Cyprus has shut its banks until at least Thursday. The local stock exchange also remains closed.
Cyprus’ banks were badly exposed to Greece, which has itself been the recipient of two huge bailouts.
On Monday there were jitters on global markets over Cyprus, amid shock that for the first time in the eurozone crisis ordinary savers would suffer a “haircut” on their bank accounts – a slice of their savings.
Related: Why Is There So Much Russian Money In Cyprus?
