Cyprus has postponed a referendum on an £8.6bn bailout that would also impose a levy of between 6.75% and 9.9% on funds in bank accounts. The vote will now take place on Tuesday 19 March.
As part of its agreement with the EU and IMF, the Mediterranean island nation plans to impose the one-off bank account tax to reduce the size of its rescue pacakge.
However, the proposal provoked mass account withdrawals, public anger and a fall in the euro and stock markets over fears the Eurozone crisis was returning.
Cypriot politicians are trying to revise the plan before tomorrow’s vote, with president Nicos Anastasiades meeting MPs in Nicosia, saying he wants terms amended.
David Johnson, director at Halo Financial, said he was surprised the euro had only fallen one-and-a-half cents.