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UK customers escape bank levy

Around 15,000 savers in the UK arm of stricken Cypriot bank Laiki will see their deposits protected under British rules and will escape the Cyprus banking levy.

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Cyprus waits for a deal to prevent financial collapse

The Cypriot Government is working out how to stop the country sliding into bankruptcy. It recently voted against 'Plan A', and now both Cyprus and the Eurozone are waiting to see if 'Plan B' is any better:

  • The Cypriot Government is due to vote today on setting up a new fund to unlock a huge bailout package from the Eurozone
  • The Investment Solidarity Fund will raise billions of euros to prevent the country going bankrupt. It needs to reach €5.8 billion (£4.93 million)
  • The fund is also known as 'Plan B' because the Government decided not to controversially dip into thousands of savings accounts to raise the cash
  • The fund will raise money by issuing bonds, or Government loans, on state assets. It may also deny Cypriots access to services they take for granted, for example they may find limits imposed on the amount of money they can withdraw from cashpoints.

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