Nicosia, March 18 The Cypriot government is
suggesting that deposits up to 20,000 euros be exempt from a
bank levy announced over the weekend that the island needs to
avert a default, a parliamentary official said on Monday.
Remaining deposits up to 100,000 euros would be taxed at 6.7
percent and deposits exceeding that would be taxed at 9.9
percent, the official said on condition of anonymity.
The source said Cyprus's proposal would expect that bank
depositors would be compensated with shares and government bonds
related to future proceeds from gas earnings.
Under the terms of a deal brokered with euro zone finance
ministers on Friday, Cypriot authorities were to impose a 6.7
percent tax on bank deposits under 100,000 euros and a levy of
9.9. percent on deposits exceeding 100,000 euros.