Cyprus president tries to amend bailout plan
NICOSIA, Cyprus — Cyprus’ president said Sunday that he is trying to amend a key provision of an unpopular eurozone bailout plan that would tax deposits in the country’s banks to reduce its effect on small savers.
But in a nationally televised speech, President Nicos Anastasiades also urged lawmakers to approve the tax in a vote today, saying it is essential to save the country from bankruptcy.
But Cyprus’ parliamentary vote on a levy on bank deposits has been postponed until Tuesday evening.
Yiannakis Omirou, the speaker of parliament, said today the delay is needed to give the government time to amend an international bailout deal agreed on last week.
About 25 lawmakers from the communist-rooted AKEL party, the socialist EDEK and the Greens said they won’t vote for the tax in the 56-seat parliament amid deep resentment over a move some called disastrous. If Parliament rejects the tax, that would put the entire aid package in jeopardy.
On Saturday frightened savers rushed to automated teller machines to withdraw as much of their cash as they could. Cypriot officials have expressed fears of a fully-fledged bank run once lenders reopen their doors on Tuesday.
The announcement of the vote postponement set off an immediate scramble among top European financial officials.
One lawmaker told The Associated Press that European Central Bank was pressuring Cypriot authorities to hold the vote without delay.
“I completely share the unpleasant sentiment that this difficult and onerous decision has caused,” Anastasiades said. “That’s why I continue to give battle so that the decisions of the eurozone are amended in the next hours to limit the effect on small depositors.”
