Depositors in Cypriot banks will be hit with a tax on their savings, as part of a €10 billion bailout for Cyprus from the euro zone and the IMF. The deal, announced early Saturday, marks the first time that depositors in euro-zone’s banks will lose money. Accounts with more than €100,000 will be taxed at 9.9%, those with less at 6.75%, raising an expected €5.8 billion for Cyprus.
Depositors have come through the financial crisis largely unscathed but depositors in other prospective bailout countries must be running scared now.
Co-CEO and co-founder Lars Seier Christensen has written this blog about the bailout for Cyprus: