The government of Cyprus aims at exempt bank deposits up to 20 euros from forced withdrawal foreseen bybailout deal signed with international creditors. This was revealed by a source from the Parliament of Nicosia, who confirmed previous rumors. The Government proposal should provide that account holders are compensated by shares and government bonds linked to future revenues from gas exports.
According to the agreement reached during the last Eurogroup, the Cypriot authorities should impose a one-off tax of 6,7% on deposits of less than 100 euros and 9,9% on those over this threshold.
From German government signs of opening have arrived: “To achieve debt sustainability, a contribution from Cyprus is necessary – said Steffen Seibert, spokesman for the German chancellor, Angela Merkel -, a contribution from the banking sector, account holders and landlords. How the country arrives at its contribution, how it divides it, is up to the Cypriot government to decide."
The German Finance Minister, Wolfgang Schaeuble, then added that “the levy on deposits under 100 euros was not the German government's idea. If another solution is found, we wouldn't have the slightest problem”.
Openings to possible changes to the aid plan for Cyprus also came from ECB, through the mouth of the Eurotower board member, Joerg Asmussen: “If the president of Cyprus wants to change something about the levy on bank accounts, he can do it - said the German -. He just has to ensure that the funding is intact ”.
Meanwhile, negotiations are underway between the Cypriot government and international creditors (EU, ECB and IMF): "The Cypriots are discussing and will finalize a new proposal - some EU sources reported - we really want to reduce the impact under 100 thousand euros, but the idea is to maintain the goal of raising 5,8 billion euros”. The Cypriot Parliament will meet today to ratify the bailout plan.
