Cyprus aims to complete a plan today to meet the terms of a European bailout that may include tapping bank deposits, its finance minister said, as the Mediterranean island races to avert financial collapse.

After parliament approved capital controls and legislation to wind down banks yesterday, Cypriot officials are working on additional measures that could include a levy on bank deposits above 100,000 euros ($130,000). Finance Minister Michael Sarris, who is meeting with representatives of the so-called troika of the European Central Bank, European Commission and International Monetary Fund in Nicosia today, said during a break in the talks that a deposit levy is being discussed. Cyprus is scrambling to come up with 5.8 billion euros, a prerequisite for a further 10 billion euros in bailout funds it needs to prevent financial ruin and stay in the euro. Lawmakers’ rejection of an initial proposal to tax all bank deposits last week prompted the ECB to threaten to cut off emergency funding to Cypriot banks unless a deal is reached by March 25. Banks have been shut all week and are due to reopen on March 26. “We cannot fund banks that are bankrupt,” ECB council member Erkki Liikanen told […]

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Cyprus Aims to Meet Bailout Terms Today, Deposit Tax Debated

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