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Cyprus banks shuttered to avoid panic

Posted By -NO AUTHOR- On 03/18/2013 @ 12:53 pm In Front Page,Money,Politics,World | No Comments

(Reuters) – Cypriot ministers scrambled to revise a plan to seize money from bank deposits before a parliamentary vote on Tuesday that will either secure the island’s financial rescue or threaten its default.

The weekend announcement that Cyprus would impose a tax on bank accounts as part of a 10 billion euro ($13 billion) bailout by the European Union broke with previous practice that depositors’ savings were sacrosanct. The euro and stock markets fell on concern theĀ euro zonecrisis was reigniting.

Before Tuesday’s vote, which is too close to call and would send reverberations across the currency zone if lost, the government was working to soften the blow to smaller savers by tilting more of the tax towards those with deposits greater than 100,000 euros ($130,000).


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