Many businesses of Cyprus have only been accepting cash since the banks in Cyprus closed last week. The European Central Bank set a Monday deadline to come up with a bailout plan to save the Cyprus banking system from collapsing. The Cyprus parliament rejected the initial proposal to place taxes on small and large bank deposits, according to BBC News.
After many hours of negotiating, Cyprus President, Nicos Anastasiades, and the European Central Bank agreed that the Bank of Cyprus, the largest lender in the small country also known as Laiki, would tax large deposits. The percentage to be levied will be determined and revealed in weeks to come. Accounts and deposits less than 100,000 euros will be secure and safe from being taxed.
The swift bailout plan has saved the Cyprus banking system from fallout and the tax on Laiki deposits is expected to raise 4.2 billion euros.
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