Markets Open Down on Cyprus Bailout

    Image #: 21655747    Demonstrators raise their arms in protest as Cypriot President Nicos Anastasiades's convoy drives to the parliament in Nicosia March 18, 2013. Cypriot ministers rushed on Monday to revise a plan to seize money from bank deposits as part of an EU bailout, in an effort to ensure lawmakers supported it in a vote later in the day. The weekend announcement that Cyprus would impose a tax on bank accounts as part of a 10 billion euro ($13 billion) bailout broke with previous practice that depositors' savings were sacrosanct and sent a shiver across the bloc, causing the euro to tumble and stock markets to dive.   REUTERS/Yorgos Karahalis (CYPRUS - Tags: POLITICS CIVIL UNREST BUSINESS TPX IMAGES OF THE DAY)       REUTERS /YORGOS KARAHALIS /LANDOV

    Yorgos Karahalis/Reuters/Landov

    This sounds like the opposite of the desired effect. International markets in Asia and Europe opened down on Monday on the news of an unprecedented proposed bailout by the European Union and the International Monetary Fund for Cyprus that would put a tax on bank savings to finance the bailout. Cyprus’s Parliament will hold an emergency session on Monday to discuss the bailout, which has angered the public and caused a bank run as people rushed to remove their savings before being hit with a tax. Cypriot President Nicos Anastasiades pleaded to the angry public to accept the deal, saying the country is facing its worst crisis since the Turkish invasion in 1974. Cyprus is the fifth European nation to appeal to the EU for bailout, and the country had apparently invested heavily in Greek debt.

    Read it at BBC News