Cyprus parliament rejects bank savings tax



Members of Cyprus parliament rejected a deeply unpopular tax on bank deposits as conditioned by Eurogroup for its financial assistance to the island.

The 56-seat parliament voted by 36 votes against and 19 abstentions to reject the bill imposing a levy of up to 10% on the country’s bank deposits as part of a €10 billion international bail-out.

The proposed one off levy on bank deposits was rejected in order to safeguard the Cyprus financial industry and international depositors that contribute about half of the island’s GDP and bank deposits.

A Cyprus government delegation including the Minister of Finance, Minister of Commerce, Energy and Industry and Cyprus bank officials are currently in Moscow negotiating with the Russian Government and the Russian business community for a financial assistance package involving banking and energy acquisitions.

At the same time the Cyprus authorities intensify their efforts to raise funding from other domestic and international sources.

All the Cypriot banks remain closed today and possibly will remain closed till the end of the week. The banks will also be closed on Monday the 25th March, a bank holiday.

We regret for any inconvenience these developments may be causing and we will keep informing you of all developments. We are ready to assist in any possible way through our head quarters in Cyprus or our offices in other jurisdictions.

20 March 2013

Disclaimer: The information above is for general information and should not be relied on for any commercial or investment decisions.