European Commission President calls on Nicosia to implement deal, offers support
European Commission President Jose Manuel Barroso called on Cyprus to responsibly implement the bailout agreement reached early Monday and urged other EU member states to show "concrete" support, dpa reported.
"I call on Cyprus to show unity and responsibility in implementation of the agreements reached," Barroso said in Brussels.
The deal came hours before the European Central Bank emergency funding for the Cypriot banking sector was due to expire.
Nicosia and its international creditors cast aside proposals for a despised one-off tax on all bank deposits, as Cyprus' contribution to qualify for a 10-billion-euro (13 billion dollars) bailout.
The new plan foresees losses absorbed by Cyprus' two largest banks, one of which is to be immediately wound down, with the holders of deposits of more than 100,000 euros taxed at a still to be determined amount.
Cypriot government spokesman Christos Stylianides told state radio that the "compulsory levy on cash deposits for the Bank of Cyprus will be around 30 per cent."
Laika Bank is to be closed down as part of the deal, the Eurogroup of eurozone finance minsters said after overnight talks.
Barroso said a task force would be set up to provide technical assistance to help restart the economy.
"We want to alleviate the social consequences of the economic shock, by mobilizing funds from European Union instruments and by supporting the Cypriot authorities' efforts to restore financial, economic and social stability," he said.