Cypriot deposits to be taxed

President of the Euro group Jeroen Dijsselbloem said that the EU and Cyprus agreed that 10 billion euro will be granted to the island on condition of restructuring of the Laiki Bank, the country’s second largest bank. The European Commission, IMF and European Central Bank approved the idea.

The official noted that the sum of 5.8 billion euro for salvation of Cyprus was no longer topical.

European creditors insisted that Nicosia should acquire 6.75% of sums of deposits worth under 100,000 euro and 9.9% for bigger sums.

The sides have now decided to tax deposits worth over 100,000 euro, taking away up to 30% of the sum at the Bank of Cyprus.

Laiki Bank will gradually be split. 4.2 billion euro will be spent on restructuring it.

Dijsselbloem noted that Nicosia should continue talks with Moscow to receive support.

According to 2012, Nicosia had a state debt exceeding 85% of the GDP. The European Central Bank plans to stop supporting Cyprus, unless it adopts a plan for recovery of its credit institutions on March 25. Cyprus banks will have holidays on March 26.