Home 2020 Election Cypriot parliament votes against deposit levy

Cypriot parliament votes against deposit levy

A Cypriot woman shouts slogans as she holds a placard during a protest against an EU bailout deal outside the parliament in Nicosia (AFP Photo / Patrick Baz)
A Cypriot woman shouts slogans as she holds a placard during a protest against an EU bailout deal outside the parliament in Nicosia (AFP Photo / Patrick Baz)

The Cypriot parliament has voted against a revised bank deposit levy. The tax was meant to shave 9.9% off any deposits over €100,000 and has since caused uproar in the country.

Thirty six deputies voted against the proposal to tax bank deposits  in the 56-member chamber, while 19 abstained. One deputy was not present for the vote.

“The bill has been rejected,” said house speaker Yiannakis Omirou, as thousands of protesters outside the parliament building in Nicosia erupted in cheers.

According to the proposal, a 6.75% rate was to be set for amounts between €20,000 and €100,000. Deposits of up to €20,000 euros were to remain untouched.

Passage of the bill was considered a prerequisite for a €10 billion European Union bailout for the Mediterranean island. EU finance ministers have warned that Cyprus’ two biggest banks could go bust if a bailout deal in some form is not forthcoming. The government and opposition parties have scheduled emergency talks on the bailout for Wednesday.

Cyprus has discussed the tax with its European creditors. Ministers from the 17 eurozone countries urged protection for savers with €100,000 or less and for them to be spared from the levy, after the prospect brought panic to the markets and had Cyprus dealing with the prospect of Russia withdrawing its rescue loan.

The Cypriot government’s original proposal was to tax all depositors, setting the rate of 6.75% on all deposits under €100,000 and maintaining a 9.9% tax on all deposits above that level.

In the meantime all Cypriot banks have frozen the accounts liable for the tax and stopped all transactions, including electronic and closed for a long weekend until Thursday to prevent panic.

Cyprus needed to raise €5.8 billion euros for its bailout program and was hoping to get the money in the planned bank deposits levy.


Must Read


Silly is, as silly does, could easily be the subtitle following the name of the current comedy/farce romp "The Underpants," now on stage at...

Protesters threaten to stab Mitch McConnell outside his home

A mob of angry gun control protesters gathered outside Senator Mitch McConnell’s Louisville home and chanted death threats in a bid to...

2,505 Barenaked ladies take over the beach in record-breaking skinny dip

Thousands of naked women descended on an Irish beach to break the world's record for the most significant group skinny dip. 

State Route 60 Truck Lane Project

Nighttime lane closures are scheduled within the project limits for road resurfacing. Travel lanes will be reduced to one lane in each...

A politics shift on gun taxes?

After shootings in Canoga Park, Gilroy, El Paso and Dayton, an assemblyman hopes to jumpstart legislation that would impose $25 tax on new firearm sales. Assemblyman Marc...
%d bloggers like this: