The banking crisis in Cyprus continues – with banks there staying closed until at least next Tuesday . Original plans to levy a tax of upto 9.9% on deposit accounts have been dropped after a vote in Parliament. The ECB has threatened to withdraw support for the country’s banking sector if a bailout is not agreed by Monday.
The plan to tax most of the country’s deposit holders appears to have been dropped in favour of a mixture of some taxes on bigger deposits plus a “solidarity fund” backed by state assets. The fund could use Cyprus’s energy resources as collateral, or include state assets, pension funds or the property of the Church of Cyprus. A vote on the possible package should take place on Friday .
Here in Ireland in 2010 the government agreed to use some of the National Pension Reserve fund as part of the bailout agreement See here :
Eurozone finance ministers have agreed to hold a meeting in person, in Brussels, on Sunday.