Cypriot parliament says no to savings tax


Parliament in Nicosia Tuesday rejected a plan to tax savings in Cypriot banks stipulated in the EU/IMF 10 billion euro bailout deal. Banks stay closed until Thursday. Eurozone ministers advised Cyprus to move the tax burden – 7% on depositors of up to 100,000 euros, away from small savers. This would leave the big investors exposed to the tax – many of them Russians who used the island as an offshore or money laundering site.  President Vladimir Putin said it is “unfair and sets a dangerous precedent,” but this precedent has also sent uneasy waves through the European banking system. 


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