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A tax on deposits was necessary to avoid bankruptcy

President Nicos Anastasiades said on Saturday that the tax on bank deposits a painful decision makers had to take in order to get the financial aid the country’s economy would face lest deal specially with.

Anastasiades said, who was elected three weeks ago with a pledge to negotiate a quick rescue program that refused to approve these terms would collapse the largest banks in Cyprus.

He will address to the nation on Sunday, when Parliament meets in emergency session to decide on whether to approve this action.

Cyprus became the fifth country, after Greece and Ireland, Portugal and Spain to the euro area to get financial assistance.

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In a radical shift from previous rescue aid packages forced eurozone finance ministers savers in Cyprus to give what amounts to 10 percent of their savings to collect nearly six billion euros.

The new tax will be identified by 9.9 percent on deposits exceeding 100 thousand euros and 6.7 percent on any amount less than this limit on Tuesday after Monday’s bank holiday.

Cyprus will take urgent steps to prevent electronic funds transfers over the weekend to avoid capital flight.

The tax violated a taboo imposed by euro-zone download depositors.

But a source at the Ministry of economy said that the rescue plan limited to Cyprus and oversized and ‘ banking sector could not be applied in any other State. ‘

Cyprus has agreed to increase the corporate tax rate 2.5 basis points to 12.5 percent for loans. This would increase revenue and restrict the size of the desired loan from the euro zone and keep public debt low