Cyprus parliament to hold emergency bailout session

The €10 billion bailout agreed by the EU and IMF demands that all bank customers pay a one-off levy and has led to heavy cash withdrawals.

18 March 2013, 12:00am

1 min read

Cyprus' parliament is today holding a session to discuss the €10 billion bailout that angered the public after the conditions agreed by the EU and IMF demands that all bank customers pay a one-off levy.

This condition has led to angry citizens, long queues in front of banks and heavy cash withdrawals.

If the deal is defeated in parliament, state media say banks could be closed on Tuesday so as to avoid mass withdrawals.

A spokesman for one of the coalition partners, the Democratic Party, told BBC News it wanted assurances that the deal would solve the problems facing Cyprus before it voted in favour.

Opposition leader George Lillikas, an independent, said the president had "betrayed the people's vote".

Under the bailout's terms, people in Cyprus with less than 100,000 euros in their accounts would have to pay a one-time tax of 6.75%. Those with sums over that threshold would pay 9.9% in tax.