ECB Said Against Levy on Cyprus Deposits Under EU100,000Jeff Black
The European Central Bank opposed taxing Cypriot savings accounts under 100,000 euros ($129,450), a person familiar with the discussions said.
The structure of an unprecedented proposal to take 6.75 percent from every savings account under 100,000 euros to lower the cost of the Mediterranean island’s bailout was designed by Cyprus President Nicos Anastasiades and the Cypriot finance ministry, said the person, who asked not to be named as the discussions are not public. The agreement was announced on March 16 after all-night talks.
ECB Executive Board member Joerg Asmussen said in Berlin today that the Frankfurt-based central bank had “not insisted” on the structure of the levy. The Cypriot government can decide to change the design of the levy as long as the planned amount of 5.8 billion euros is raised, he said.