The Cypriot Parliament is again expected to vote on the possibility of implementing a levy on bank deposits but this time would limit the measure to accounts above 100,000 euros, according to several media reports.

Details have not yet been confirmed amid the wave of speculation over the Cypriot crisis. However, The Guardian wrote that Cypriot television broadcasters are discussing a 15% levy. The Wall Street Journal, on the other hand, cited sources pointing to a rate significantly lower than the 9.9% initially proposed.

Cypriot policymakers are also expected to vote on a restructuring plan for Cyprus Popular Bank. The plan looks to split the bank into a 'good' and 'bad' bank, reducing the Troika's demand to come up with €5.8bn because the bank would no longer need to be recapitalized.

Other proposals reportedly considered by parliament includes capital controls in order to prevent a bank run in the country. Some sources say that capital control systems could be in place for months.

There were also rumours that the Troika has increased the amount it wants Cyprus to raise from €5.8bn to €6.7bn.

JM

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