NICOSIA, Cyprus (AP) — Cyprus' president said Saturday that the decision to force bank depositors to share the burden of a €10 billion ($13 billion) bailout package from its European partners and the International Monetary Fund was done to save his country from financial ruin.
The president said the deposit levy rescues banks, keeps the country's debt load manageable, and avoids the risk of deeper pay cuts and tax hikes.
News of the levy stunned the public because Anastasiades and his top ministers had vehemently rejected any suggestions of going after deposits to save Cyprus' banks that lost billions on bad Greek debt.
"The Cypriot banking sector will be significantly reduced to a sustainable level and business model," he said.
The Cypriot bailout still needs parliamentary approval by euro area countries, and Schaeuble said it will be brought before the German parliament in the second half of April.
Because of this, Cyprus' situation and this agreement are not transferrable to any other country in the eurozone.
The president said the deposit levy rescues banks, keeps the country's debt load manageable, and avoids the risk of deeper pay cuts and tax hikes.
News of the levy stunned the public because Anastasiades and his top ministers had vehemently rejected any suggestions of going after deposits to save Cyprus' banks that lost billions on bad Greek debt.
"The Cypriot banking sector will be significantly reduced to a sustainable level and business model," he said.
The Cypriot bailout still needs parliamentary approval by euro area countries, and Schaeuble said it will be brought before the German parliament in the second half of April.
Because of this, Cyprus' situation and this agreement are not transferrable to any other country in the eurozone.
 |
| READ THE ORIGINAL POST AT www.sfgate.com |
