Levies on bank deposits in Cyprus will go into effect earlier this week Monday, March 18, 2013. Where Cyprus will take immediate measures to prevent the transfer of electronic money over the weekend.
'Contribution to financial stability Cyprus, seems only to require contributions from all holders of deposits, "said Dutch Finance Minister, Jeroen Dijsselbloem, who chaired the meeting in Brussels, as reported by Reuters (16/03/2013).
In return for emergency loans, Cyprus agreed to increase the tax rate by 2.5 percentage points institutions to 12.5 percent. And this is expected to be able to increase revenue Cyprus to limit the size of the loan required from the euro zone and keeping public debt.
And Dijsselbloem said under this program, the Mediterranean island nation's debt would fall to 100 percent of economic output in 2020.
Traded over the weekend euro hit one-week highs against the U.S. dollar after data showed a lack of U.S. inflation, which will make room for the Federal Reserve to keep QE3.
The euro was also supported by the results of the meeting of European leaders, who opened the way for finance ministers to preparing a bailout package for Cyprus.
While the size of the banking sector has complicated the Cyprus problem with the ratio of deposits that reach 8x GDP. Initial assessment needs help predict Cyprus € 17 billion which € 10 billion will be used to stabilize the banking sector. It's certainly big enough load for the Cyprus economy value only reached € 18 billion.
'Contribution to financial stability Cyprus, seems only to require contributions from all holders of deposits, "said Dutch Finance Minister, Jeroen Dijsselbloem, who chaired the meeting in Brussels, as reported by Reuters (16/03/2013).
In return for emergency loans, Cyprus agreed to increase the tax rate by 2.5 percentage points institutions to 12.5 percent. And this is expected to be able to increase revenue Cyprus to limit the size of the loan required from the euro zone and keeping public debt.
And Dijsselbloem said under this program, the Mediterranean island nation's debt would fall to 100 percent of economic output in 2020.
Traded over the weekend euro hit one-week highs against the U.S. dollar after data showed a lack of U.S. inflation, which will make room for the Federal Reserve to keep QE3.
The euro was also supported by the results of the meeting of European leaders, who opened the way for finance ministers to preparing a bailout package for Cyprus.
While the size of the banking sector has complicated the Cyprus problem with the ratio of deposits that reach 8x GDP. Initial assessment needs help predict Cyprus € 17 billion which € 10 billion will be used to stabilize the banking sector. It's certainly big enough load for the Cyprus economy value only reached € 18 billion.
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