NICOSIA, March 18 Cyprus is considering the
introduction of a tax-free threshold for smaller bank deposits,
a government source said on Monday, in an attempt to win over
lawmakers hostile to a bank levy announced over the weekend that
is needed to avert a default.
"There is an attempt to mitigate the burden on smaller
depositors, with a zero tax rate," the source told Reuters on
condition of anonymity. He said the tax-free level was still
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 9.9.
percent on deposits exceeding 100,000 euros.
Those two coefficients may stay the same, the source said,
but added that things could change by the time final legislation
is submitted to parliament.