NICOSIA (Reuters) – Cyprus’s parliament postponed an emergency session called to approve a levy on bank deposits on Sunday after signs lawmakers could block the surprise move agreed in Brussels to help fund a bailout and avert national bankruptcy.

In a radical departure from previous aid packages, euro zone finance ministers want Cyprus savers to forfeit up to 9.9 percent of their deposits in return for a 10 billion euro bailout to the island, financially crippled by its exposure to neighboring Greece.

NICOSIA (Reuters) – Cyprus’s parliament will decide on Sunday whether savers must pay a levy on bank deposits under terms for an international bailout to avert bankruptcy – with approval far from certain.

The euro zone demand on Saturday that savers pay up to 10 percent of deposits as a condition for the 10 billion euro ($13 billion) bailout drew fury in the eastern Mediterranean island and caused some jitters elsewhere in the region.

BRUSSELS/NICOSIA (Reuters) – The euro zone agreed on Saturday to hand Cyprus a bailout worth 10 billion euros (8.6 billion pounds), but demanded depositors in its banks forfeit some money to stave off bankruptcy despite the risk of a wider run on savings.

The eastern Mediterranean island becomes the fifth country after Greece, Ireland, Portugal and Spain to turn to the euro zone for financial help during the region’s debt crisis.

BRUSSELS, March 16 (Reuters) – The euro zone struck a deal
on Saturday to hand Cyprus a bailout worth 10 billion euros ($13
billion), but demanded depositors in its banks forfeit some
money to stave off bankruptcy despite the risks of a wider run
on savings.

The eastern Mediterranean island becomes the fifth country
after Greece, Ireland, Portugal and Spain to turn to the euro
zone for financial help during the region’s debt crisis.

NICOSIA (Reuters) – Frustration over a delayed bailout turned to incredulity and anger in Cyprus on Saturday as islanders woke up to news that savers would be footing part of the bill to avert national bankruptcy.

In a radical departure from previous euro zone rescues for Greece, Ireland, Portugal and Spain, finance ministers struck a deal to lend the indebted island 10 billion euros ($13 billion). But in return, depositors would have to forfeit up to 10 percent of their savings.

NICOSIA, March 14 (Reuters) – Ireland’s issuance of its
first long-term bond since being bailed out is an important step
towards qualifying for help from the ECB’s bond-buying
programme, European Central Bank Governing Council member
Panicos Demetriades said.

In an interview with Reuters, conducted on Wednesday, the
Cyprus central bank governor said euro zone economic recovery
was holding to its projected path and the Italian election
stalemate had not increased risks to growth.

NICOSIA, March 11 (Reuters) – Cyprus is inching towards
raising corporate tax to stave off IMF pressure for investors to
take losses on bank deposits as it seeks to secure a bailout, a
source close to the talks said on Monday.

International lenders, who resumed talks with Cyprus last
week, are urging Cyprus to lifts its corporate tax rate from 10
percent, and introduce a capital gains levy, to ensure it can
repay an international bailout which it requested last year.

NICOSIA, March 11 (Reuters) – Cyprus is inching towards
hiking its corporate tax rate in an attempt to stave off IMF
pressure for investors to take losses on bank deposits to pay
for a bailout that would avert the sovereign default.

Corporate tax, now at a nominal 10 percent and among the
lowest in the European Union, was previously considered a no-go
area for authorities.

NICOSIA, March 6 (Reuters) – Cyprus insisted on Wednesday
that people holding money in its banks – many of them Russian
and British – must not take a hit in efforts to repair the
island’s shattered finances.

Attempts by Cyprus to secure aid have been complicated by
concerns about how the island could afford to pay back a debt
burden which could potentially reach 17 billion euros ($22
billion) – almost the size of its economy, one of the euro
zone’s smallest.

NICOSIA, March 1 (Reuters) – Cyprus’s new finance minister
on Friday ruled out a haircut, or imposed losses, on bank
deposits to ease a financial bailout from international lenders,
now stalled amid worries about debt sustainability.

“Really and categorically – and this doesn’t only apply in
the case of Cyprus but for the world over and the euro zone -
there really couldn’t be a more stupid idea,” Michael Sarris,
who took over his post on Friday, told reporters.