Vote on Bailout Levy Might be Postponed as Official hope to Modify to Avoid Defeat

Cypriot officials are working on tweaks to the controversial bailout plan to limit the damage to small savers from measures intended to seize up to 10% of all bank account deposits.

A parliamentary vote on the measure, planned for Tuesday, may be postponed as most members of parliament plan to reject it in its current form.

Cypriots have been outraged since they woke up this weekend to find an unprecedented EU bailout agreement that meant anyone with money in a Cyprus bank account – including the smallest current accounts or no-interest accounts – would have a percentage seized in order to secure an international deal to save the Mediterranean island from default and banking collapse.

Cypriot and eurozone officials are trying to modify the levy of 6.75% on deposits of up to €100,000 (£85,000), and 9.9% on those above €100,000 to ease the burden on small savers. A revised draft bill seen by Reuters would exempt savings under €20,000, charge a rate of 6.75% for amounts between €20,000 and €100,000 and maintain a 9.9% tax on deposits above that level.

via Guardian

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