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Response to Demeter (Reply #2)

Tue Mar 19, 2013, 05:53 AM

5. Eurozone ministers urge Cyprus to shield small savers

Since the start of the financial crisis there has been a guarantee that deposits under 100,000 euros in banks in the EU would be protected.

Many observers believe the Cypriot levy breaks the spirit of that agreement, and there is concern that it could also damage the confidence of depositors in other eurozone countries...

... Eurozone finance ministers - the Eurogroup - discussed the situation in a conference call on Monday evening.

Following the talks, its president Jeroen Dijsselbloem issued a statement saying the group "continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below 100,000 euros".

He said Cyprus would "introduce more progressivity in the one-off levy" - in other words, shift the burden away from small savers towards bigger depositors - provided that the same amount of funds, 5.8bn euros, was raised.

Mr Dijsselbloem urged "a swift decision by the Cypriot authorities and parliament to rapidly implement the agreed measures"...

/... http://www.bbc.co.uk/news/world-europe-21839324

Cypriot and euro zone officials have sought to soften the initially proposed levy of 6.75 percent on depositors of up to 100,000 euros and 9.9 percent above 100,000 to ease the burden on small savers.

But passage of the bill in the 56-member chamber, where no party has a majority, was unlikely and it was not clear if the vote would even go ahead later on Tuesday if leaders were sure it would be rejected.

"It looks like it won't pass," Cypriot government spokesman Christos Stylianides told state radio.

The House of Representatives was expected to meet at 1600 GMT. Rejection of the measure would effectively block a bailout that Cyprus needs to keep its banks afloat and government paying wages and welfare...

/... http://uk.reuters.com/article/2013/03/19/uk-eurozone-cyprus-idUKBRE92F07R20130319

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Tansy_Gold Mar 2013 OP
Demeter Mar 2013 #1
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Ghost Dog Mar 2013 #4
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Demeter Mar 2013 #32
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Demeter Mar 2013 #13
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Demeter Mar 2013 #26
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