Cyprus News | Savers in South to Lose up to 10% of Savings in Bailout

Cyprus News | Savers in South to Lose up to 10% in BailoutCyprus News | Savers in South to Lose up to 10% of Savings in Bailout

As part of an agreement linked to the EU bailout, savers in the south with less than €100,000 in a Cypriot bank account will have to pay a one-time tax of 6.75% while those with more will lose 9.9%. This tax is expected to bring €5.8 bn in additional revenues, greatly reducing the country’s need to borrow.

There is a worry that a similar levy could apply in other EU countries needing a bailout and this could lead to a financial exit from banks in these countries. Cypriot banks are already making sure that depositors cannot withdraw money to reduce their tax liability although savers can freely withdraw the rest of their money. Cypriot MPs are expected to pass laws over the weekend allowing the tax money to be taken early next week.

What a nightmare for someone who has transferred money to buy a property in the south and then find that 10% has been taken unexpectedly. Seems like those who took their money and ran during the week, despite being told there was no need, weren’t as stupid as they were being told they were.

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