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BRUSSELS, March 18 (Itar-Tass) – A levy on the bank deposits of over 100,000 euros in Cyprus may grow from 9.9% to 13%, an informed European source in Brussels told Itar-Tass on Monday. The talks over the budget salvation of Cyprus continue, and the final figures are not determined yet, he acknowledged.
He noted that Nicosia proposes to international creditors to modify the program, cutting the anti-crisis levy from the bank accounts of less than 100,000 euros from 6.75% to three percent and increase the levy from the bank accounts of over 100,000 euros from 9.9% to 12.5–13%.
Thus, the major burden of financial levies will be redistributed between the physical persons, primarily Cypriot citizens, to the accounts of the companies, first of all foreign companies and mainly Russian companies, as well as major foreign investors, who are keeping the money at the Cypriot banks.
For the Cypriot government this step is more profitable, because it permits to avoid a social outburst and a political crisis, meanwhile, this will not result in further serious deterioration of the Cypriot reputation in the business community.