EU blijft vasthouden Cypriotische bijdrage 5,8 miljard euro (en)

BRUSSELS - EU officials remained defiant on controversial plans for a Cypriot bailout on Monday (18 March), the most tumultuous day for the euro so far in 2013.

Following an emergency conference call of eurozone i finance ministers on Monday evening, the eurogroup refused to backtrack on a deal which includes a one-off raid worth €5.8 billion on deposits held in Cyprus' stricken banks.

Dutch finance minister Jeroen Dijsselbloem i, who chairs the 17-member Eurogroup, said that the deal on offer was a fair one. "Cyprus would have faced scenarios that would have left deposit holders significantly worse off," he said.

However, while the Cypriot government is expected to exempt savers holding less than €20,000, it will still be expected to raise the €5.8 billion demanded by creditors.

This increases the prospect of harsher levies on the wealthiest depositors. EU sources indicated that a 15.6 per cent levy on savers holding more than €100,000 had been mooted to protect smaller depositors.

Djisselbloem urged Cypriot politicians to make a "swift decision" and "rapidly implement the agreed measures".

He added that the levy could be applied with more flexibility "provided that it continues yielding the targeted reduction of the financing envelope and….not impact the overall amount of financial assistance up to €10bn."

The Cypriot parliament is set to vote on the package later on Tuesday (19 March) after the vote, initially scheduled for Sunday, was postponed to give the government further space to negotiate.

With his centre-right coalition holding 29 of the 56 seats, newly elected centre-right President Nicos Anastasiades faces an uphill battle to secure a majority after opposition parties signalled they would oppose the deal.

Cypriot banks will remain closed until Thursday in a bid to prevent a bank run from anxious savers. The euro also fell to 1.29 against the US dollar, its lowest level in three months.

Meanwhile, recriminations intensified as eurozone politicians and central bankers denied responsibility for imposing the deposit levy that would tax 6.75 percent of savings under €100,000 and 9.9 percent on savings over €100,000.

The bailout plan also received condemnation from Russia, with billions of euros of Russian money said to be Cypriot banks. A spokesman for Russian President Vladimir Putin attacked the plan as "unfair, unprofessional and dangerous". Cypriot finance minister Michalis Sarris will discuss the issue in Moscow on Wednesday (20 March).

For its part, the US government urged the EU to reach an agreement that was "responsible and fair and ensures financial stability."

The UK government became the first to signal its intention to compensate 3,000 British soldiers stationed on the Mediterranean Island. It also announced plans to temporarily suspend pension payments to the estimated 18,000 retired Britons in Cyprus with Treasury minister Greg Clark stating that "a normal payment service will resume as soon as the situation in Cyprus becomes clear."