Cyprus Parliament Rejects The Bailout Plan That Would Have The Cyprus Government Seize Bank Deposits

Cyprus Rejects Bailout Plan That Would Make Savers Pay, Raising Anxiety In Euro Zone -- Washington Post

BERLIN – Lawmakers in Cyprus on Tuesday rejected a bailout plan that would have rescued the country’s banks but forced savers to chip in for the cost, throwing down a gauntlet to the rest of Europe over the financial fate of the tiny island nation.

The plan to save Cyprus’s collapsing banks but to charge depositors for the service proved so controversial that not a single one of the 56 members of Cyprus’s parliament voted for the plan on Tuesday evening. The rejection leaves the fate of rescue plans up in the air, with other European leaders so far unwilling to step in to save Cyprus, whose bank deposits tower over the rest of its economy.

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More News On The Cyprus Parliament Rejecting The Bailout Plan That Would Have The Cyprus Government Seize Bank Deposits

Cyprus bailout: 'Plan B' spares small savers as government defeat looms - live. -- The Guardian
Cyprus government scraps levy up to €20,000 in draft bill - Live. -- The Telegraph
Cyprus lawmakers reject bank tax; bailout in disarray -- Reuters
Cyprus lawmakers reject bill to tap bank deposits to fund bailout -- FOX News/AP
Cyprus Rejects Deposit Levy in Blow to European Bailout Plan -- Bloomberg
Cyprus Parliament Rejects Bank Deposit Levy -- Wall Street Journal
Cyprus MPs reject EU-IMF bailout tax on bank depositors -- BBC
Cypriot MPs reject tax on bank deposits -- Al Jazeera

My Comment: What an utter mess. This remains me of the Soviet Union when it collapsed and the ruble /Russian banks imploded .... I was a witness to that mess, and I am now seeing the Euro-zone positioning itself to repeat that history.