Cyprus 'scraps bank levy' in new bailout plan

[Eugene]

Source: BBC

[div class=excerpt"]21 March 2013 Last updated at 12:52 GMT

Cyprus 'scraps bank levy' in new bailout plan

Political leaders in Cyprus appear to have dropped an unpopular levy on bank deposits in a new bailout plan.

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Cyprus is required to find 7bn euros (£6bn; $9bn) to get a 10bn-euro EU-IMF loan. Cypriot officials now propose a state investment fund and special bond issue to raise 5.8bn euros.

The other 1.2bn would be raised through privatisations and by increasing capital gains tax and the corporate tax rate.

Details of the new plan are still being worked out, and it is not clear if it will be put to a parliamentary vote on Thursday.

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Read more: http://www.bbc.co.uk/news/world-europe-21875246

[dipsydoodle]

1. The issue with raising funds

by increasing capital gains tax and the corporate tax rate is the time lag. The main factor they lack at present is time - they've only got 4 days.

Not sure either who is supposed to buy their state bond - their banks have no funds to do so and the cost of default insurance for others went through the roof beginning of this week.

[dixiegrrrrl]

2. Those "privatisations" are of pension funds.

Pension funds from state run businesses.