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Cyprus postpones bailout debate until Monday

Cyprus postpones bailout debate until Monday
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The Cypriot parliament’s debate on the savings tax that shocked the entire nation will now take place on Monday.

The president postponed the debate to gain time and try and ensure a majority, as for the moment the EU-IMF imposed levy on savings has raised hackles on all sides.

He is due to speak to the nation and explain why for the first time international creditors have chosen to tax personal savings to help pay for a 10 billion euro bailout.

Rates will start at 6.75 percent and go to 9.9 percent on deposit accounts. The Eurogroup expects this will raise 5.9 billion euros.

Banks may stay closed until Wednesday morning to prevent savers making massive withdrawals, which may prove more of a problem for foreign depositors, who hold 37 percent of Cypriot savings.