Tuesday, March 19, 2013
Cyprus Proposes No Levy on Small Savers
March 19, 2013
Cyprus's government aims to exempt smaller savers from a controversial bank deposit levy, according to draft legislation submitted to parliament, as it scrambles to secure votes for the bill.
Under the legislation, savers with less than €20,000 (about $26,000) in their bank accounts will pay no levy, while those between €20,000 and €100,000 will pay a 6.75% rate.
Bank accounts with more than €100,000 would be taxed at a 9.9% rate, the draft said.
Under a deal reached with euro-zone finance ministers Saturday morning, the bank levy—a precondition for receiving an €10 billion bailout from its euro-zone partners and the International Monetary Fund—saw all deposit holders paying.