NICOSIA – The House of Representatives on Tuesday rejected a Government bill to impose a levy on all bank deposits saying the Eurogroup’s demand was predatory and illegal.
Akel, Diko and Edek, the European Party, the Green and an independent produced a majority vote of 36 against with 19 abstentions. Ruling Disy abstained. The House met after several delays with hundreds of demonstrators protesting against the bailout outside.
The rejection had been widely anticipated with the president himself saying he didn’t expect it to be approved. He has called all political leaders to a 9am meeting at the Palace.
Banks remain closed until Thursday and are bracing for an anticipated run once they do open.
The Finance Minister, Michalis Sarris is on his way to Moscow seeking Russia assistance to cover Cyprus’s and the banks’ financial requirements.
Earlier on Tuesday the government amended the bill to exempt depositors under €20,000 but this failed to sway the house. The mood in the h House was very much against the Eurozone.
Parties say they have alternative proposals to submit to the government.

Published by:  www.incyprus.com.cy

Video from Bloomberg