UPDATE: Cyprus bank levy bill defeated with 36 votes against
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(Updated - March 19, 2013 2:54 PM EDT)
Cyprus bank levy bill defeated with 36 votes against.
UPDATE - U.S. markets are still pressured Tuesday following Cyprus' parliament voting to reject a bill needed to secure an international bailout.
According to data, 36 members of the Cypriot legislature shot down the measure, 19 abstaining, and one wasn't present for the vote. The country has been working to gain support for a measure which would tax bank deposits, a measure needed for a €10 billion capital infusion.
The debates started over the weekend with Cyprus President Nicos Anastasiades warning lawmakers that depositors could start withdrawing funds from banks if measures weren't taken to restore confidence.
Central bank governor Panicos Demetriades suggested that €7.5 billion in deposits, or 10 percent of the total held in Cypriot banks, could be removed within days of reopening.
The draft bill would save depositors with €20,000 or less from the levy, noted the WSJ today. Those with €20,000 to €100,000 would still pay 6.75 percent, while those with over €100,000 would pay a 9.9 percent rate.
One Cypriot lawmaker said that the draft bill would fall €300 million short of the €5.8 billion in revenue generation that was required by the International Monetary Fund (IMF), a number the IMF wasn't willing to budge on.
The Dow Jones is off 25 points, Nasdaq is down 20.6 points, and S&P 500 is down nearly 8 points Tuesday afternoon.
Cyprus bank levy bill defeated with 36 votes against.
UPDATE - U.S. markets are still pressured Tuesday following Cyprus' parliament voting to reject a bill needed to secure an international bailout.
According to data, 36 members of the Cypriot legislature shot down the measure, 19 abstaining, and one wasn't present for the vote. The country has been working to gain support for a measure which would tax bank deposits, a measure needed for a €10 billion capital infusion.
The debates started over the weekend with Cyprus President Nicos Anastasiades warning lawmakers that depositors could start withdrawing funds from banks if measures weren't taken to restore confidence.
Central bank governor Panicos Demetriades suggested that €7.5 billion in deposits, or 10 percent of the total held in Cypriot banks, could be removed within days of reopening.
The draft bill would save depositors with €20,000 or less from the levy, noted the WSJ today. Those with €20,000 to €100,000 would still pay 6.75 percent, while those with over €100,000 would pay a 9.9 percent rate.
One Cypriot lawmaker said that the draft bill would fall €300 million short of the €5.8 billion in revenue generation that was required by the International Monetary Fund (IMF), a number the IMF wasn't willing to budge on.
The Dow Jones is off 25 points, Nasdaq is down 20.6 points, and S&P 500 is down nearly 8 points Tuesday afternoon.
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