Nicosia - Cyprus's revised draft bill for a levy on bank
deposits scraps the measure for savings under €20 000 but does not compensate
for the resulting lost revenue by raising it for the wealthy.
The draft, seen by Reuters, did not say if the new structure
for the levy raises the required €5.8bn European officials have demanded in
return for €10bn in aid.
The bill sets a zero percent levy on deposits of up to €20
000, a 6.75% rate for amounts between €20 000 and €100 000 and maintains a 9.9%
tax on all deposits above that level.
Under a previous agreement struck by euro group finance
ministers on Saturday, all deposits below €100 000 would have been taxed at
6.75% and everything above at 9.9%.
After an outcry in Cyprus and abroad against the move,
eurozone finance ministers urged Cyprus on Monday to scrap the levy below €100
000 to spare small savers, and raise it instead for richer bank clients, to
But Nicosia was reluctant to agree to such a move because it
fears it would scare away foreign depositors, mainly from Russia, and undermine
the country's banking-based business model.
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