-Central bank governor of Cyprus against government plan on bank deposit charge.

Global Banking News-March 21, 2011--Central bank governor of Cyprus against government plan on bank deposit charge(C)2011 ENPublishing - http://www.enpublishing.co.uk

Global Banking News - 21 March 2011

The central bank governor of Cyprus, Athanasios Orphanides, has said that he is against a plan by the government to impose a tax on bank deposits in the nation.

According to Orphanides, any move to tax bank deposits would weaken Cyprus' financial sector and increase risks. He said that 'imposing taxes on banks will further increase the pressure and costs faced by the banking sector and by extension the cost of borrowing in all other sectors of economic activity.'

The government has proposed a two-year 0.05 per cent tax on commercial bank deposits of more than EUR100,000. The tax is expected to raise EUR120m.

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