Greek Cypriot parliament postponed a vote scheduled for on a bill that would allow for the seizure of some percentage of bank deposits, a major condition which Greek Cyprus' international creditors demand for a 10 billion euro bailout package to stave off bankruptcy, according to news reports appeared on the Greek Cypriot media.
The postponement was reportedly due to last-minute objections from the International Monetary Fund to the deposit tax bill which Greek Cypriot finance minister said could impose a 15 percent tax on all bank deposits over 100,000 euros or a tax of 20-25 percent on accounts only in the Bank of Cyprus.
Greek Cypriot lawmakers approved late on Friday part of an alternative package which they hope would help raise 5.8 billion euros needed to secure the internationalbailout.
The lawmakers approved the three most important bills of the nine bill-package that creates 'a solidarity fund,' divides lender Laiki into a 'bad bank' and 'a good bank,' and authorizes Greek Cypriot finance minister and central bank governor to restrict financial transactions in times of emergency.
The Greek Cypriot lawmakers had overwhelmingly rejected an EU-backed bill that ordered a 6.75 percent tax on accounts below 100,000 euros and a tax of 9.9 percent on accounts more than 100,000 euros.