Cyprus parliament postpones session on bailout deal

PanARMENIAN.Net - Cyprus's parliament has postponed an emergency session on a controversial bailout deal for the country's banks.

The debate and a presidential address were to happen on Sunday, March 17 but will now take place on Monday, according to BBC News.

The deal reached with the EU and IMF on Friday has provoked public anger because it would impose a levy on bank deposits of up to 10%.

The president has said that refusing the bailout would lead to the collapse of the country's banks. Worried investors have been queuing outside banks to withdraw their savings from cash machines.

The 10bn-euro ($13bn) deal agreed by the EU and IMF marks a radical departure from previous international aid packages.

Under its terms, people in Cyprus with less than 100,000 euros in their accounts would have to pay a one-time tax of 6.75%. Those with sums over that threshold would pay 9.9% in tax.

Depositors will be compensated with the equivalent amount in shares in their banks.

On Saturday President Nicos Anastasiades admitted the deal was "painful" but said it was necessary to avoid a "disorderly bankruptcy".

But opposition leaders and savers - including many non-Cypriots - have expressed shock and anger at the proposal.

The deal requires the approval of parliament.

President Anastasiades's Democratic Rally party - which has 20 seats in the 56-member assembly - needs support from other factions to ratify the bailout.

The president has been meeting with members of the parliament's finance committee, his office said.

On Saturday the head of the committee, Nicholas Papadopoulos, expressed shock at the deal, saying it was "much worse than expected".

Opposition leader George Lillikas said the president - who was elected last month - had "betrayed the people's vote".