Europe continued to struggle Tuesday to explain a controversial plan to bail out the troubled Cypriot economy, one that is undermining the continent’s most prized – but scarce – asset: trust.
However, the loan agreement with the troika – the European Union, the International Monetary Fund, and the European Central Bank – unexpectedly included a controversial levy of 6.75 percent on bank deposits below the 100,000 euro ($130,000) benchmark, the maximum amount that accounts are insured for in Europe. - CSMonitor.com
Cypriot lawmakers have rejected a critical draft bill that would have seized part of people’s bank deposits in order to qualify for a vital international bailout.
The bill, which had been amended Tuesday morning to shield small deposit holders from the deposit tax, was rejected with 36 votes against, 19 abstentions and zero votes in favor. One deputy was absent.
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