What is Cyprus's Investment Solidarity Fund?
The Cypriot government announced today that it would create a so-called "Investment Solidarity Fund", in essence a state investment fund.
Here are the main points of the plan:
- The fund will bundle state assets such as natural gas revenues, church property and social security fund reserves, as the basis for an emergency bond issue.
- It will bundle together assets in an effort to help raise the 5.8 billion euros it must contribute to a plan to shore up.
- The fund is intended to appeal to "the patriotism of Cypriots" and draw on contributions from ordinary Cypriots, businessmen and foreign investors.
- Officials have reported that some kind of deposit tax was not being ruled out.
Read: Full statement on government agreeing to a solidarity fund
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