Cypriot authorities scrambled to renegotiate the terms of a €10bn bailout by moving to scrap its controversial levy on small account holders and instead seizing more from larger depositors and businesses.
The islands’ banks were ordered to stay closed for two more days to avoid a bank run, as the government delayed for the second day running a parliamentary vote on the deal struck with eurozone officials and the International Monetary Fund over the weekend.
A senior EU official said international lenders were pushing the Cypriot government to exempt all deposit holders below €100,000. Instead, the IMF, the EU and the European Central Bank wanted a levy of 15.6 per cent on all deposits above that level, many of which are held by Russians.
Keep reading: Cyprus scrambles to renegotiate bailout – FT.com.
See other Ft.com articles:
- Cyprus depositors' fate sealed in Berlin
- Cyprus banks shut until Thursday
- Cypriot authorities in revised deal talks
- Cypriot bank deposits hit in €10bn bailout
- ECB role in bailout comes under scrutiny
- European yields jump on Cyprus bailout
- Nerves bring swift switch to cash economy
- Savers suffer in Cyprus
- Finance ministers seek Cyprus bailout pact
- Europe botches another rescue
- Russians join locals as big Cyprus losers
