Hope no one has money in a Cypriot bank
The Wall St. Journal, Marketwatch and probably others are reporting that Cyprus is hitting bank deposits with a one-time tax as part of a bailout package. The tax will be imposed over the weekend, no chance for account owners to withdraw money before the tax hits.
From the WSJ article (subscription required):
Depositors in Cypriot banks will be hit with a one-off tax on their savings, as part of a €10 billion ($12.96 billion) bailout for the Mediterranean island from the euro zone and the International Monetary Fund.
From Marketwatch (no subscription needed):
Depositors with more than 100,000 euros will be taxed at 9.9%, while those with less at 6.75% to raise a total of about 6 billion euros for the island nation that’s near bankruptcy, The Wall Street Journal reported.
Should make for an interesting day - and not a good interesting - on Tues (Monday's a holiday) when Cypriot banks reopen.
I wonder if there were any big withdrawals on Friday. Also curious how big a haircut bank shareholders, bond holders and executives took in the process.