Arab Today, arab today cyprus mps delay bailout vote amid market turmoil
Last Updated : GMT 00:54:54
Arab Today, arab today
Arab Today, arab today

Cyprus MPs delay bailout vote amid market turmoil

Arab Today, arab today

Arab Today, arab today Cyprus MPs delay bailout vote amid market turmoil

Nicosia - AFP

Cyprus\'s parliament has postponed until Tuesday a session to vote on a EU bailout deal that slaps a levy on all Cypriot bank savings, as negotiators scrambled to soften the blow for small deposit holders. Amid rising anger and jitters on global markets, MPs had been due to vote on the measure Monday but the speaker Yiannakis Omirou said the session would now take place at 6.00 pm (1600 GMT) on Tuesday. He said the postponement was agreed by parliamentary party leaders after being briefed by President Nicos Anastasiades. The bailout deal, agreed at the weekend, sparked market turmoil on Monday and stoked fresh fears of debt crisis contagion. Cyprus Finance Minister Michalis Sarris and Central Bank governor Panicos Demetriades separately told lawmakers they were seeking a fresh formula that would exempt smalltime bank depositors from the unprecedented levy. They added they were looking to see a tax-free threshold for savings up to 100,000 euros ($129,000), but that under this plan deposits of more than 100,000 euros would be forced to take a bigger hit. A EU source in Brussels said Nicosia and international creditors were busy discussing changes to the levy. \"We really want to reduce the impact\" on smaller savers but the \"idea is still to achieve the same objective, (of raising) 5.8 billion euros,\" the source said. In the bailout accord agreed in the early hours of Saturday with the EU, the International Monetary Fund and the European Central Bank, Cyprus accepted a levy of 6.75 percent on accounts up to 100,000 euros and 9.9 percent thereafter. The aim was to limit the overall size of the bailout to about 10 billion euros, rather than the 17 billion euros originally mooted. But the move has triggered outrage in Cyprus, forcing the newly-elected government onto the defensive as it tries to get parliament approval for the rescue package. The accord also dealt a serious blow to global confidence by stoking fears that other countries in difficulty might opt for the same course of action. On the financial markets, which have risen strongly in recent months on hopes the worst of the debt crisis was over, the banks were hit badly Monday as investors looked for safety first. \"If European policymakers were looking for a way to undermine the public trust that underpins the foundation of any banking system they could not have done a better job,\" said CMC Markets analyst Michael Hewson. \"The feeling is that the euro crisis could be back and that you could see full-on contagion, that\'s why you\'re seeing the market reaction today,\" Shane Oliver, chief economist at AMP Capital in Sydney, told Dow Jones Newswires. News of the controversial tax also drew a sharp response from Russian President Vladimir Putin, who, according to a Kremlin spokesman, called it \"unfair, unprofessional and dangerous.\" Russian Prime Minister Dmitry Medvedev too slammed the deal. \"We should say this directly: this simply looks like the confiscation of other people\'s money,\" Russian news agencies quoted Medvedev as saying. \"I do not know who the author of this idea is, but this is what it looks like.\" Several analysts said the measure was meant to make sure that Brussels did not spend billions propping up the at-times ill-gotten gains of rich Russians, who are widely reported to have exploited Cyprus\'s reputation as a tax haven. Cyprus has repeatedly denied the allegations of being soft on \"dirty money\" and offered to open its accounts to international inspection. Estimates vary but the Moody\'s rating firm estimates that up to $19 billion in private Russian cash is held in Cyprus. The figure accounts for between a third and half of all Cypriot deposits. Anastasiades, in an address to the shell-shocked nation on Sunday night, said he had chosen \"the least painful option\" and that rejecting the EU demands would have seen Cyprus exit the eurozone and face bankruptcy. Terming it the worst crisis to hit Cyprus since the 1974 Turkish invasion, he gave an assurance that those taking a hit now would be compensated when huge gas offshore gas deposits are eventually exploited, in about 2018. Breaking news of the levy shocked Cypriots at the start of a three-day holiday weekend, many rushing to cash points and depleting them within hours. Online transfers were stopped although shoppers were able to use credit cards at supermarkets and at fuel stations. Local media said Anastasiades is struggling to secure even a simple majority for the terms of the bailout in the 56-member parliament in which his conservative DISY parliament holds just 20 seats. Reports said the president may have to declare an additional bank holiday on Tuesday following the parliamentary postponement in order to prevent accounts being emptied.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cyprus mps delay bailout vote amid market turmoil Arab Today, arab today cyprus mps delay bailout vote amid market turmoil

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: قضايا ساخنة
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday