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Cyprus Parliament Due To Vote On Bailout Deal

The Cyprus Parliament is due to vote later in the day on a controversial bailout deal that includes a one-time levy on savings accounts.

The deal worked out by the new Cyprus government and its international creditors on March 16 has sparked anger in Cyprus, which has long made a policy of luring foreign wealth through extremely favorable tax treatment and other incentives.

Banks are closed until March 21 amid fears of massive withdrawals.

Eurozone finance ministers issued a statement late on March 18 saying the burden of the one-time levy should not fall on small savers.

Under the plan, those holding less than 100,000 euros in bank accounts in Cyprus would pay a 6.75 percent tax.

Reports say lawmakers in Cyprus are now working to place more of the tax on those with deposits greater than 100,000 euros.

The deal has angered Moscow.

Many wealthy Russians have accounts in Cyprus.

Based on reporting by Reuters and AP