Connect to share and comment

No need for asset levy elsewhere in euro zone except Cyprus - Eurogroup head

PlacardEnlarge
(Globalpost/GlobalPost)

AMSTERDAM (Reuters) - There will be no need to impose a levy on assets in other euro zone countries along the lines of that Cyprus plans on bank deposits to limit the size of emergency loans it needs, the chairman of euro zone finance ministers said on Tuesday.

Cyprus plans a levy on deposits above 20,000 euros of 6.75 percent and 9.9 percent on deposits higher than 100,000 euros, to raise cash for the recapitalisation of its oversized banking sector, hit hard by the Greek sovereign debt restructuring.

This raised concerns that a similar measure could be used in other euro zone countries, undermining depositors' confidence in banks. But Dutch Finance Minister Jeroen Dijsselbloem, who chairs meetings of euro zone ministers, said it would not happen in other countries.

"It is absolutely out of the question, there is no need for a one-off levy in other countries on assets," Dijsselbloem said in the Dutch parliament.

He reiterated that because of the size of the Cypriot banking sector and its recapitalisation needs, it was inevitable that depositors had to be called on to help.

(Reporting by Gilbert Kreijger, writing by Jan Strupczewski; editing by Rex Merrifield)

http://www.globalpost.com/dispatch/news/thomson-reuters/130319/no-need-asset-levy-elsewhere-euro-zone-except-cyprus-eurogroup-