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Cyprus considers levy exemption for savings under €20,000

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Cypriot politicians have drafted a bill that would exempt depositors with less than €20,000 in savings from the country’s proposed savings levy, according to reports.

Reuters is reporting that Cypriot parliamentarians have submitted a draft bill that will impose a levy of 6.75 per cent on savings of between €20,000 and €100,000 and 9.9 per cent on savings above €100,000, protecting small savers.

It is unclear whether the newly designed levy would meet the €5.8bn Cyprus needs to raise as part of its €10bn bailout package from the European Union and International Monetary Fund.

Cyprus has declared an extra two days of bank holiday on Tuesday and Wednesday to prevent a run on the banks as its parliament prepares to vote on the levy.

Yesterday the UK Government suspended state pension payments to Cypriot accounts and vowed to compensate 3,000 military families based on the island for “reasonable costs”.

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