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Euro zone wants no Cypriot deposit levy up to 100,000 euros

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(Globalpost/GlobalPost)

BRUSSELS (Reuters) - Euro zone finance ministers are in favour of imposing a 15.6 percent levy on deposits of above 100,000 euros (85,776.69 pounds) in Cyprus's banks to help recapitalise its financial sector while sparing depositors up to that level, euro zone officials said.

Euro zone finance ministers held a conference call on Monday to again discuss the terms of a 10-billion-euro bailout for the Mediterranean island that they had agreed early on Saturday.

"All Eurogroup ministers wanted the 100,000 euros to be untaxed," one Greek finance ministry official said. "Cyprus doesn't want to impose a large tax above 100,000 because the money will flow out. Two thirds of deposits are from abroad."

(Reporting by euro zone bureaux, writing By Jan Strupczewski; Editing by Michael Roddy)

http://www.globalpost.com/dispatch/news/thomson-reuters/130318/euro-zone-wants-no-cypriot-deposit-levy-100000-euros