The essence of the Cyprus bailout is that all bank depositors will be subject to a tax/confiscation/haircut/levy.
As it currently stands, if you have over 100K euros in the bank, you’ll pay a tax on of 9.9%.
Under 100K euros and you’ll pay 6.5%.
This is incredibly controversial, and there is no guarantee that the plan, as it stands, will pass the Cypriot parliament.
Dow Jones’ Matina Stevis (who is in Cyprus now, and a must follow on Twitter for all sorts Greece/Cyprus/Eurozone stuff) tweets plans to make the tax more progressive.
Photo: Matina Stevis
This will ease the burden a bit on the little guy, and even more squeeze the wealthy Russian oligarchs and mobsters who are believed to hold a lot of cash in Cypriot bank accounts.
Cyprus banks reopen on Tuesday. The next 24 hours will be very interesting.
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