Cyprus legislature was 24 hours late deciding a solution for the economic disaster in Cyprus.
Bizarre tax rates given to Cyprus bank depositors made ATMs run short on money. Financial shares throughout Cyprus declined.
Yahoo says “government bonds” throughout southern Europe fell, and the value of Euro decreased 1% versus American dollars. Europe announced last Saturday 10 billion Euros will be given to Cyprus with certain conditions.
Cyprus residents with bank deposits over $100,000 will be charged at the rate of 9.9% on Tuesday. Lower bank depositors will have to pay 6.75% rate in order to solve this financial crisis.
European financial experts claim people’s deposited money may not be safe in the bank. Shocked about high rates, Cyprus residents began to withdraw money from ATMs with a 400 Euro limit for the rest of the week until no money was left.
The Yahoo article says Cyprus’ Legislature are trying to make rich depositors pay more, and unwealthy depositors to pay
less before reaching a decision. Cyprus president Nicos Anastasiades tried to tranquilize the small nation, recommending legislature to vote for financial assistance.
The Yahoo article states that Cyprus needed financial assistance since June 2012 after the banks’ debt with Greece, leading to recession.