Cyprus Delays Bailout Debate

    An elderly man passes by a cooperative bank in Limassol, Cyprus, Saturday, March 16, 2013. Many rushed to the cooperative banks which are open Saturdays in Cyprus, after learning that the terms of a bailout deal that the cash-strapped country hammered out with international lenders, includes a one-time levy on bank deposits. The move, decided in an extraordinary meeting of the finance ministers of the 17-nation euro zone in the early hours Saturday, is a major departure from established policies.  (AP Photo/Pavlos Vrionides)

    Pavlos Vrionides/AP

    After making a controversial decision, postponing the government debate on it probably won’t help matters. Cyprus’s government delayed a parliamentary debate on Sunday, one day after announcing a tax of up to 10 percent on bank deposits. Cyprus’s president said the country faces collapse of its banks without the bailout, but investors already began withdrawing their savings on Sunday. Cyprus’s €10 billion bailout deal, reached by the EU and the IMF, calls for a onetime tax of nearly 10 percent on people with more than €100,000 in their account, while those with less than €100,000 euros will pay 6.8 percent.

    Read it at BBC News