Putin blasts Cyprus levy on Bank deposits as ‘unfair’

Russian President Vladimir Putin believes the Cypriot government’s plans to impose a one-off levy on all bank deposits as part of a bailout deal to get much-needed loans from international creditors would be “unfair, unprofessional and dangerous,” Kremlin spokesman Dmitry Peskov said Monday, RIA Novosti reports.

Putin held a meeting Monday with administration staff and economic aides to discuss economic developments in the eurozone, Peskov said.

“In assessing a possible decision to impose an additional tax on bank deposits in Cyprus, Putin said this decision, if made, would be unfair, unprofessional and dangerous,” Peskov quoted Putin as saying.

The European Union and the IMF agreed on Saturday to bail out Cyprus’ debt-laden economy and grant the island nation a loan worth 10 billion euros ($13 billion) in return for the government’s obligation to tax all deposits kept at Cypriot banks.

Under the terms of the bailout deal, Cyprus will have to impose a levy of 6.75 percent on deposits of less than 100,000 euros and 9.9 percent on deposits with greater amounts.

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