ECB gives Cyprus March 25 deadline for bailout deal, EUR 100 million in Romanian money on the island
The total amount of Romanian money in Cyprus is some EUR 100 million, according to the ECB. This figure excludes holdings of financial institutions, but includes everything else – individuals, households and companies outside the financial sector. The amount held by Romanian companies and individuals in loans from Cypriot banks was higher; around EUR 400 million.
The Cypriot government rejected a bailout deal on Tuesday that would have demanded a one-off tax on deposits in Cyprus' banks to co-finance a bailout. Initially, all deposits would have been taxed, but an amendment to exclude deposits of less than EUR 20,000 was tabled. Despite the exemption for smaller deposits, the Cypriot parliament rejected the proposal, with not one single MP voting in favor of the plan.
In the most recent draft, the tax would be 6.75 percent on deposits between EUR 20,000 and EUR 100,000, or 9.9 percent on amounts in excess of EUR 100,000. This would apply to the EUR 100 million in Romanian money held by banks on the Mediterranean island.
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