The Bank of Cyprus UK has confirmed that its depositors will not be affected by a bank levy which Cyprus is potentially imposing on savers as part of a euro bailout plan.
Under the controversial move, announced over the weekend, the Cypriot government said that a 6.75 per cent levy would be imposed on all deposits under 100,000 euros, while accounts over that amount would be hit with a 9.9 per cent levy.
The Bank of Cyprus UK has two saving accounts for charities– CharityBond and CharityFlexibond. A spokeswoman said: “Whilst the measures agreed include an up-front one-off stability levy on deposits in Cyprus, there is no effect on deposits with Bank of Cyprus UK Limited which is a UK bank.”
Over the weekend, Nicos Anastasiades, president of Cyprus, said he had to accept a levy on bank deposits to save the island from bankruptcy. The one-off levy – an unprecedented move in Europe – is part of a £10bn rescue package agreed in Brussels. The tax is expected to raise £5.8bn.
A vote on confirming the package is expected to take place in Cyprus's parliament today.
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