Cyprus Banks Remain Closed as Financial Crisis Continues
Government looking at grabbing pension funds
NICOSIA, Cyprus — Scrambling to placate international lenders, Cyprus late Wednesday proposed to nationalize the country's pension funds and conduct an emergency bond sale to help raise the 5.8 billion euros the indebted country needs to secure a bailout.
The proposals are meant to slash the amount of money that would be raised a controversial tax on bank deposits, as originally planned in a 10 billion euro international bailout package that the Cypriot Parliament rejected the night before.
But even the revised plan contains a bank tax, that while much smaller than originally proposed, might still not be palatable to Parliament. Under the new plan, all Cypriot bank deposits of up to 100,000 euros would be hit by a one-time tax of 2 percent. Deposits about that threshold would be subject to a 5 percent levy.
Hide Comments (0)
Editor's Note: As of February 29, 2024, commenting privileges on reason.com posts are limited to Reason Plus subscribers. Past commenters are grandfathered in for a temporary period. Subscribe here to preserve your ability to comment. Your Reason Plus subscription also gives you an ad-free version of reason.com, along with full access to the digital edition and archives of Reason magazine. We request that comments be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of reason.com or Reason Foundation. We reserve the right to delete any comment and ban commenters for any reason at any time. Comments may only be edited within 5 minutes of posting. Report abuses.
Please
to post commentsMute this user?
Ban this user?
Un-ban this user?
Nuke this user?
Un-nuke this user?
Flag this comment?
Un-flag this comment?