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Cypriot bank levy would lead to deposit outflows: central bank chief
March 19, 2013 / 9:52 AM / in 5 years

Cypriot bank levy would lead to deposit outflows: central bank chief

NICOSIA (Reuters) - Cypriot banks stand to lose more than 10 percent of their deposit base within a matter of days if a levy on bank deposits is imposed, its central banker said on Tuesday.

Cyprus Central Bank Governor and ECB Governing Council member Panicos Demetriades speaks to members of the media during a news conference in Nicosia November 30, 2012. REUTERS/Andreas Manolis

“If the draft bill passes, we would see deposit outflows of 10 percent or maybe more in the first few days,” central bank chief Panicos Demetriades told the Cypriot parliament’s finance committee.

He added that the central bank’s and the European central Bank favored scrapping the levy for all deposits below 100,000 euros, in line with the position expressed by euro zone finance ministers late on Monday.

Reporting by Karolina Tagaris; writing by George Georgiopoulos

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