Bruton assures savers here will not face bank tax

Deposit account holders need not fear a Cyprus-style tax on their savings, according to Enterprise Minister Richard Bruton.

Mr Bruton said the detail of the EU’s bailout of Cyprus would be designed to avoid contagion elsewhere in the euro-region. Initially Cypriot resident and non-residents were to be levied 6.75% on bank savings of less than €100,000, and 9.9% above that benchmark. With rates in flux, these levies could move to 3.5% and 12.5% respectively.

“Junior bondholders are clearly in the firing line in this case,” Mr Bruton told RTÉ Radio One yesterday. “The deal has yet to go to the Cypriot parliament. There is an indication of flexibility in relation to the deal, but the detail has yet to be finalised.