The Ministry for Finances of the Cyprus proposed formation of the National Solidarity Fund consisting of income from sales of hydrocarbons, bonds and securities. Other measures the parliament will consider today are trade limitations and reorganization of the banking system, Reuters reports.
Should international creditors approve the initiatives, the EU will grant €10 billion to Cyprus. Cyprus President Nikos Anastasiadis said that a decision should be made before March 21.
The previous package of actions, including taxing bank deposits worth less than €100,000 with 6.75% of the sum and bigger deposits with 9.9% tax, was scrapped. Cyprus needs about €17 billion to recapitalize banks and support budget. The EU and IMF grant €10 billion if Cyprus agrees to make €5.8 billion from deposits.
If it fails to find €5.8 billion on Monday, the country may face a financial collapse and leave the euro zone, RIA Novosti reports.
Cypriot Minister for Finances Mikhalis Sarris told Anastasiadis that Russia offered a loan worth €2.5 billion.
Standard & Poor’s reduced the rating of Cyprus from CCC+ to CCC- with a negative forecast.
