In order to help shore up its embattled financial system, Cyprus is considering a levey of 25% on bank deposits worth over Eur100,000 in the island-nation's largest financial institution, the Bank of Cyprus. This was announced by Cyprus Finance Minister Michael Sarris as one of the options for the fundraising drive.
In an interview with reporters, Sarris said the 'significant progress' has been done in discussions with officials from the European Union, the International Monetary Fund and the European Central Bank. The 'big three' as they are termed, may conclude negotiations on a bail out plan for Cyprus.
The Cypriot government is working overtime to complete an alternative plan in raising funds to help the country qualify for an international bailout. The bankruptcy deadline is would pass by March 26. Amongst the requirements is the raising of Eur5.8 billion to land the Eur10 billion rescue loan package from the IMF. The European Central Bank is also warning that it would stop providing emergency credit lines without a new plan in place by Monday.
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