Cyprus politicians reject tax on bank deposits

Cypriot politicians have agreed to set up an investment fund as part of a 'Plan B' to secure a bailout deal and they have ruled out a tax on bank deposits that sank an earlier deal.

A consensus was reached by lawmakers on a proposal by President Nicos Anastasiades and a unanimous decision was taken to set up the Investment Solidarity Fund.

The subject of a controversial "haircut" on bank deposits was ruled out completely at today's meeting.

Earlier, the European Central Bank warned it will pull the plug on emergency funding for Cypriot banks if no new bailout deal is agreed before banks there re-open on Tuesday.